“Will Weakness Continue in Bullion??? Or is this an illusion .”
“Is the Fate of Gold and Silver Over? –YES or no“ !!
Last Friday, there was an unexpected free fall in bullion, which has made bullion traders depressed. Gold went down to near about 1,480 *FUT while Silver traded below 26.00.
Since last 2 weeks, we had clearly mentioned that if Gold breaks 1,540, it shall enter a technically bearish mood while if similarly silver breaks 26.00 then it also enters a technically bearish mood.
Last week, we said that Gold would recover and which could have made it to 1,595 and 28.50 respectively for Gold and Silver. Last week, Gold went upto 1,589 & Silver went above 28.00.
We had also mentioned that Friday is going to be highly volatile.
And a sharp fall was witnessed.
Now, every other person is saying that “Gold and Silver shall decline”.
A major question that arises here,“ Is the Precious Period of Gold & Silver practically Over??? Do you really think that Gold and Silver wouldn’t ever come up?”
Our answer to this question is clear cut viz. No. We are yet to witness a new bull phase in bullion.
The bullish mood of bullion which had fought inflation in recent decade shall resume after a short period.
And as per our knowledge, again in 2 -3 years, Gold and Silver will be on all time new heights.
Let’s have a look at the journey of bullion in past.
In 2009, Gold started its journey from 800$/Oz and went up to 1,150$ /Oz. Similarly, Silver started its journey from $10/Oz to $18/Oz.
In 2011, Gold started its journey from 1,400$/Oz and went up to 1,850$/Oz while Silver went up from 25$/Oz to 48$/Oz. In May 2011, again a fall was seen in bullion and Silver went down from 48 to 28$ while Gold went down from 1,850$/Oz to 1,550$/Oz.
Again in last year 2012, Gold started its journey from 1,550$/Oz to 1,780$/Oz while Silver started its journey from 28.00$/Oz to 36.00$/Oz. It made the mentioned high and then declined.
This is not for the “FIRST” time that we are witnessing such falls in context with precious metals.
These sorts of fall have already been witnessed in 2011, 2012 and several others years.
The fall that has come currently may continue further for a very short period and then bullion shall enter in recovery mode.
Before this year’s Diwali (October 2013), we shall see Bullion at highs.
There’s a great thought written by the highly respected investor Warren Buffet – “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”.
Positional investors who wish to buy Bullion for a long period (about a year or two), can make long position currently but that should be only 25-30% of their capital. And for the rest 25-30%, they should wait for 29-30th April 2013.
A very good return shall be seen.
For example- US stock market started witnessing fall from 8th January 2008. And it kept on declining like anything! People who were able to make long positions at those lower levels have seen phenomena hike this year making the US market into all time high.
You must understand that lower levels are not meant to short but to initiate a part of long positions.
Technically, this week, the major resistance for Gold is 1,520$/Oz while Support shall be 1,434$/oz.
The major resistance for Silver is 26.90$/Oz and major support shall be at 22.50$/Oz.
Astrologically, next week as well, weakness can continue.
On 15th & 16th APRIL 2013- weakness shall continue with volatility.
On 17th APRIL 2013, recovery shall start any time from 14.00 HRS (IST) which shall continue till closing.
On 18th APRIL 2013, we expect a highly volatile trend and bullion could trade both sides. It should first go down then up and then down. Overall, 18th shall be an average day.
On 19th APRIL 2013, again a correction may be seen in bullion from US hours. Correction can continue till closing.
[[NOTE: The ‘U’ turn in Bullion is expected from 22nd April 2013. ]]
Again from 28th – 30th April 2013, a correction can come in bullion.
And then a positive rally shall come in bullion, which can continue with volatility.
Jupiter will enter in Gemini sign in May last week. This shall be positive for bullion in the long term perspective.
However, some correction may come up as a part of volatility or say profit booking at higher levels.
Today’s view & trading range: Bullion shall be highly volatile for the day. Again decline shall be seen in US hours.
Trading Range: ONLY FOR MEMBERS
View on Base Metals:
Base metals are expected to be overall weak this week.
Monday and Tuesday- a sell on rise strategy should be used for base metals. And then recovery shall be observed from Wednesday, which can continue till Friday evening. And then again decline in US hours.
Copper if sustains below 332 then can go down to 260. If Copper sustains above 332 then can go up to 342. Astrologically, we see that “sell on rise” strategy should be used for Monday and Tuesday.
View On Energy Products:
Crude Oil shall be heavily volatile on Monday and Tuesday. Recovery shall come in oil from Wednesday. If Oil breaks 89.00 then heavy decline is possible. But if it is able to sustains above 90.00, we shall see a U turn in crude for 94-95. You can buy Crude Oil with stop loss 89.00
Natural Gas can witness a sharp fall any time this week. NG if sustains above 4.25 then can go to 4.32. Please use a stop loss while working with Natural Gas as it’s already on a bullish trend.
You can sell NG on higher level but with stop loss 4.27.
Global Stock Indices:
This week, global stock indices shall be highly volatile.
Monday & Tuesday- highly volatile and overall weak trend is expected.
Asia shall recover on Monday & Tuesday from lower levels. Again a gap down opening is possible on 17th April 2013. And then again it would have a U turn.
On 18th April 2013, stock market shall have mix trend.
On 19th, Asian market shall be positive.
Sharp fall is possible in UK market this week (especially on 16-17 APRIL 2013).
US market shall be range bound on Monday. But sharp fall is possible on 16th or 17th April 2013 and again on 19th April 2013.
Today’s Trading Range & View(15th April 2013):
Asian market shall have negative opening. Recovery can start from mid-session. Closing may be positive. UK shall have positive opening but closing may be bearish.
US market shall have positive opening. Profit booking shall be observed at higher levels.
Sharp fall is possible in EUR/USD. Below 1.3150, EUR/USD can go down to 1.2800 and below.
This week, USD/INR if sustains above 54.30 shall go up to 55.20.
View on Indian Stock Market:
Today, Indian stock market shall have negative opening. However, recovery shall start after opening. First half shall be highly volatile but positive trend can be observed in second half.
Closing may be positive.
Bank Nifty shall be volatile to positive this week.
BUY ON DIPS: (POSITIVE FOR THIS WEEK):
- ALLAHBAD BANK
- UCO BANK
- KTK BANK
- JP ASSOC.
- LIC HOUSING
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