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TECHNICAL AND FUNDAMENTAL TREND OF GLOBAL GOLD FUTURE FOR MAY 18TH

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GOLD SETTLES $ 37 (LTP $ 1573.60)

FUNDAMENTAL


The European Union debt and financial crisis is still on the front burner of the market place. The Fitch ratings agency Thursday further downgraded Greece’s debt rating, which was not at all surprising. After Tuesday’s failed efforts by Greek politicians to form a coalition government, fresh Greek elections are now scheduled for mid-June. Concerns regarding Greece leaving the Euro zone are high, as the Greeks’ commitment to financial austerity is highly questionable. Spanish and Italian bond yields are above 6%, which is stressing the EU financial system.

TECHNICAL

Gold has completed a 61.8% Fibonacci retracement and hopefully some regular readers were buyers in the last 24 hours. I put out a buy recommendation at $ 1525-$1530  on Tuesday and though prices got there quicker than I had anticipated it is now water under the bridge. Prices have closed nearly $40 off that level. As long as $1535 in June holds on a closing basis I like bullish exposure. Upside targets are $1615 followed by $1650 and then I'll re-evaluate. Silver got some legs today as well picking up 3% to trade in the green for only the second time in two weeks. There is more risk in silver longs as $27.15 is eyed as support. From here I expect a bounce back near $30/ounce. 

TODAY NUMBERS

RESISTENCE #2 .............................$ 1602
RESISTENCE #1..............................$ 1588
PIVOT..............................................$ 1565
SUPPORT #1...................................$ 1551
SUPPORT #2...................................$ 1528

MCX

RESISTENCE #2 .............................INR 28980
RESISTENCE #1..............................INR 28762
PIVOT..............................................INR 28362
SUPPORT #1...................................INR 28160
SUPPORT #2...................................INR 27850

RECOMMENDATION : NO FRESH TRADE TODAY (POSITIONAL TRADERS WAIT FOR NEXT UPDATE) INTRADAY TRADER BUY AT OPENING FOR TGT 28650 28750 SL 28455 (KEEP SL)

Happy Trading

Rahul Kumar
Gold Analysist
Call me : 969-0022-884
write me : comexoldfuture@yahoo.com
Join me : http://hansrajconsualtant.tk/



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