Daily Wealth – Gold has 2 options: $1840 or $1460

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Dear Investor

You are receiving Free Daily Update service called Daily Wealth. It will include technical updates on SPOT NIFTY, Stocks from NIFTY 50, USD/INR, GOLD, SILVER and CRUDE.

Calls given to Subscribers would not be part of this service.

Sesa Goa shows very good pattern. Buy Sesa Goa at current level for target price of 182-190.

NIFTY

Nifty has continued to gain marginal upside. If yesterday’s low not breached on closing basis, Nifty can continue to trade with upside bias. But, do wait for 5730 test. Today, Nifty merely touched it in last half an hour.

Yesterday’s update:

NIfty has been moving in the range of 5640-5730 since last 30 days except 2-3 spikes up or down. Unless, it breaks on either side, it is difficult to bet on either side. I think patience will pay in this time. Wait for closing above or below range to initiate fresh trend.

Fundamentally Sound and Technically positive stocks: Sintex, Crompton greaves, Educomp, Force Motors, NMDC, TCI ( Transport Corporation of India ), Tecpro systems. I will keep revisiting this list.

USDINR

Rupee has closed below 54.50. As I said that I will wait for one day before deciphering any decision of 5th Nov move. Let us watch next 2 days. Today’s move is insignificant, if in next 2 days, Rupee does not close below 53.75. i.e. retracing entire rise of 5th Nov.

Yesterday’s Update:

I think, It was wrong to estimate that Rupee will shoe resilience. Rupee has closed above the range. Yes, I will wait for one more day to see that Rupee sustains above 54.50. But, if sustains then 55.60 and 55.90 will be next target.

GOLD

As said yesterday, Gold is retracing some of the fall. For uptrend, it should rise above the 2nd Nov high of $ 1717. If you are short on Gold, best is to hold it with closing basis stop loss of $1717 or else stay away.

Gold is trading in the middle of trend channels in monthly chart and there 2 options exist. It can hit either $ 1840 on upside or can test $ 1460 on downside.

Why Gold Fell?

Gold was trading in range and had been in range since mid of September. GDP and Jobs data of US were on improvement since then. The sudden improvement of Jobs data was catalyst for Gold’s sudden fall.

Market participants and traders believed that if Jobs data improves and GDP continues to improve as it improved in last quarter above expectation, then US will stabilise, Govt’s revenue will increase and issuance of Fed T-bill will reduce and hence Dollar will go up. When Dollar goes up, inflationary expectations come down and hence God should fall !!

But, this is mere daydream. Gold is far from being topped out. I expect this downturn to continue for some time and may be till Jan, 2013. But, rest assured, US will fall further before sustainable recovery and Fed will continue to print as it has been doing since last 4 years and dollar too will continue to slip down. This is temporary downturn.

The sad thing is, this sharp downturn will shake Gold holders from within and most of them will abandon their positions. Stay tune to my updates.

SILVER

Silver will continue to follow Gold.

CRUDE

I will remain sideways. Will update as opportunity arises.

Note:

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Regards

Dhaval Shah

Blog: https://investmentacademy.wordpress.com/

Disclaimer: Daily Wealth is a free daily investment newsletter published by Investment Academy. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. Author might have open positions in the stocks and Indices recommended above.

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