I have been bullish on previous metals since almost one year now. In my
previous post on previous metals written on 14th February 2014, I have written,
“Gold and silver has both given a breakout as expected in
my post on 2nd Jan 2014. I
wrote, “If we look at the first chart of gold
It seems that gold will bounce from here. Traders can keep a stop loss of 1180
and go long on gold. Similarly traders can keep a stop loss of 19 and go long
on silver at cmp of 20.10.”
In the same post I also wrote that, “Although it is too
early to take a buy call on them, I think that both metals are poised to move
up sharply.”
If you have observed the way prices have moved over last two
months, you will realize that my apprehensions about being too early in the
call proved completely correct. The price of gold and silver both moved up and
crashed to retest the previous lows. Gold fell from 1280 to 1240 and silver
fell from 20.50 to low of 19.0175. Since then there has been a constant up move
in prices of both gold and silver.
I expect gold and silver both to move up from these levels.
The target for gold should be around 1425 – 1500 and for silver around 24 – 25
USD an ounce.
Gold and silver have both hit my
stop loss given in the call on 2nd Jan 2014. I have never expected that gold and silver
will break below their multiyear trend lines as evident from the chart.
If gold and silver closes below
1200 and 17.00 USD respectively then I will suspect that we are in a multiyear
bear market form previous metals. In that case the target for Gold will be 1000
USD and target for silver will be below 14 USD.
But if Gold and silver pulls back
and gives a closing above 1200 USD and 17 USD respectively before the closing
of December 2014 then there are fair chances that we have already seen a long
term bottom in both these precious metals and they may move up considerably from
here.
Right now the correct strategy will be to wait and watch closing prices for these metals.
No comments:
Post a Comment