Today G20, group of developed and emerging countries, which is 85% of world’s economy and 2/3 of population, going to meet. The developed countries like UK and US are urging for supporting free economy and resist calls for protectionism. Now people from the globe are eagerly waiting for the outcome of G20. I doubt any magical solution to come out apart from commitment to work as unit with continuation of process.
We have seen only sideways movement week ended 15th of Nov ’08. Worsen condition of global economy as EU entered into recession, retail sales dropping , jobless numbers hitting higher globally and more than that the current situation alarming for deeper recession throughout .
Only hopeful point for industries mainly of US, as crude oil prices came lower $56 area which was expected on last writing of 8th Nov'08. If geopolitical situation is not going to get very hot, then chances for crude oil to hold lower side even high chances to show more low towards $50-51 with a possibility of steady USD but simultaneously it hampers oil producing countries interest, which can create another problem like increasing terror activities.
We have seen only sideways movement week ended 15th of Nov ’08. Worsen condition of global economy as EU entered into recession, retail sales dropping , jobless numbers hitting higher globally and more than that the current situation alarming for deeper recession throughout .
Only hopeful point for industries mainly of US, as crude oil prices came lower $56 area which was expected on last writing of 8th Nov'08. If geopolitical situation is not going to get very hot, then chances for crude oil to hold lower side even high chances to show more low towards $50-51 with a possibility of steady USD but simultaneously it hampers oil producing countries interest, which can create another problem like increasing terror activities.
GOLD: Having the same idea just like last two weeks and expecting
sideways to downward movement . Possibility to get a triangle or rectangle formation in this area. Nearby resistance is $768 and major resistance will be $788/92 while support will be $680/82 and $664/68. Within short to mid term can expect to get $558/38 if I'm not very wrong.
If gold break and settles above the major resistance of $788/92, then we've to rethink because in this worsening economical situation it may happen due to some geopolitical uncertainty as the chances is there as mention before.
SILVER: The great speculative white metal, which is precious and at the same time have much higher use in major category of industries may going to form a clear descending channel pattern on daily chart . This week high was 1054c and low 877c. We can expect another few days to move within 828-38c to1064-72c range. Alike gold it is also may going to from a rectangle on weekly.Outside of this range resistance is 1132-34c, 1178-79c while support below is 712c and 648-52c.
DOW JONES: Another week of consolidation we just have passed and may have to go for some more days sideways. It fails to hold on the bit positive formation it made as mentioned on 1st Nov ’08.Nearby resistance 8855-60, 9180-220, 9345-55, 9780 and support 7950-60, 7860-70, 7400, 7100,
Apart from G20 meet scenario and some breaking updates about industries or central banks, the reports which we have to watch mainly as;
JAPAN: GDP, BOJ interest rate decision industry activity index.
EU: trade balance, construction output, PMI and Germany PPI, PMI.
US: capacity utilization, producer price index, industrial production, TIC flows, housing market index, mortgage applications, building permits, housing starts, CPI, FOMC minutes, continuing and initial jobless claims.
UK: consumer price index, retail price index, retail sales, BoE minutes, Q4 money supply.
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