Market Outlook(weekly baseis)

Still there is no clear positive sign for the global economy rather dipping. We just completed this weak which was month end at the same time. All the major central banks cut their key interest rates and signals more rate cut is ahead as the downside risk of economy persists.

ECB and BOE rate decision is there in next weak and expectation of rate cut. Possible some more USD strength we are likely going to see.

GOLD: I’m having with the same idea as my last report of lower gold with resistance of $788/92, while it showed a high of $778.30 on 30th Oct08. I am expecting some more liquidation to come.

Immediate support $680/82 and below $664/68. Breaking of $664/68, door‘ll open for $604. In mid term to short term $558/38 on the cards.

DOW JONES: it has given the weekly settlement above 8900, which formed a double bottom with a divergence(RSI), outside candle in weekly, with a positive settelment, which technically push prices higher once, I feel some more short covering and buying was there, which may continue at least for another few days which in turn to lead to long liquidation in gold.

Resistance of Dow is 9800/20, 10335 and 10680/750. Breaking down of 8378/58 can diminish the strength of somewhat positive formation.


SILVER: possible we‘ve to wait more time for silver to get any positive technical formation altough after forming a doji in last week it forms a outside high wave candle. Expecting stiff movement breaking the range of support 828/38 and resistance 1037/39 extended to 1064-72, in other word it may consolidate within the range at least for some days.

Resistance is 1132/34c, 1178/79c, and 1246/48c while support below 828/38 is 712c and 648/52c.