Gold & Silver; Equity All Time High vs Falling Commodities = GROWTH?
Despite
continued talks on tapering, the equity market is not ready to dive
head first. Mass buying continues as the hot money from central banks
work their way to all time high. Bubble like conditions was mentioned
a couple of times among hedge fund analysts and well known economist
but market will remain irrational for as long as it can. Others said
trade the fundamentals, while the rest are left wondering what
fundamentals?
However,
the others felt that a virtual currency such as Bitcoin seems like a
better alternative compared to the “rigged” safe haven market.
Losing the safe haven status in gold and silver seems a little too
odd but investors are accepting and increasing their trust in virtual
currencies that have limited supply. Everyone has a choice and it
seems that certain investors like the risk reward for a full blown
out rise in Bitcoin. Why hold paper money when central banks are
constantly printing? Why hold gold and silver when the sentiments are
so negative? Why put money in stock markets when uncle and aunty
across the road are inviting their friends to buy while they can?
Bitcoin rules for now but not to infinity. Eventually the big bubble
will burst and the real question is when.
We
continue to feel that the equity market is heavily overbought and
correction near to the end of the year sounds viable.
Gold Technical Outlook
Daily
Chart
With
the daily chart Bollinger band converging, a breakout is imminent in
the next few weeks. Medium term prices will trade between the two
bands until a certain breakaway happened with massive volume. The
bears could take further control should we break below $ 1181 and the
bull trend in gold will be considered over.
| Resistance: $ 1296, $ 1306, $ 1318 Support: $ 1228, $ 1200, $ 1181 |
Traders Notes:
Staying flat in this falling market - go long at $ 1305 only
| Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6- 12 months) |
| Bearish target $ 1100 | Slightly Bullish - $ 1315 | Flat |
Silver Technical Outlook
Daily Chart
A
potential base is in the making but with a strong bias of another
sell off due to the lack of buying interest.
Should
the price regain to trade above $ 20.55 and close above that, we will
set a buy to target previous support which is now resistance at $
21.35.Despite upbeat economic data as well as growth expectation
among the developed economies, silver failed to rally. So why is it
that the white metal failed to rally on the back of better economic
outlook? Weekly chart dominate with a strong bearish indicator
as prices continue to trade in a downtrend channel.
| Resistance: $ 23.25, $ 23.90, $ 24.53 Support: $19.05, $ 18.80, $ 18.20 |
Traders Notes:
Look to place another long should prices breach above $ 20.15 with
target at $ 21.15.
| Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6 - 12 months) |
| Flat | Bullish to test $ 24.80 area | Bullish - a potential bull run? |
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06 Dec 2013 | Categories: Gold
