There will be buyers on dips (for the rest of the week and in July month) as long as key they trade over key short-term technical supports. Crash or sell-off will be there if and only if key short-term resistances are not broken by the end of the second week of July. This is for precious metals and base metals.
US economic data releases PCE this week and ISM’s and NFP next week and UK elections next week can result in unexpected sharp two way price moves in all asset classes and not just precious metals and base metals.
2024 is the extreme heatwave year. No human being has ever witnessed such a long heat wave. The heat wave will impact retail consumer spending and the global economy. For example, electricity bills have more than doubled in the past two months for people living in North India and North West India. Expenditure reduction will be there as families will try to be frugal and/or debt levels in India will see another massive rise. Not just the Indian economy, but every nation’s economy will be impacted by the ongoing heat wave. Risk-taking ability or zero-hero type of trades will only rise, rise, and rise over the coming weeks, months, and years. It will be just gambling and not short-term trading and short term investing. People need higher income just to maintain the current standard of living. Risk appetite has risen multifold.
The end result is zero-hero type of trading by very large section of global society. There is a widening price gap in daily high and daily low prices. (The daily high minus daily low price gap is in a rising trend in most asset classes and not just precious metals and base metals or bond prices.). Masses are looking at the amount-wise loss for a trade. If it is okay with them, they make the trade. Most do not exit at a small profit. They prefer big profit, if not, then let the stop loss get triggered.
My message is to do all it takes to ensure that your capital is intact. Higher stop loss is the need of the hour due to increasing short term volatility. We all need to adapt to changing global investment trends and changing ways of retail traders.
Spot Silver – intraday view current market price $29.58.
- Spot silver has to trade over $29.22 to rise to $30.51 and more.
- Mild sell off will be there if spot silver trades below $29.22.
- Day traders of silver need to remain on the sidelines.
Disclaimer
- The investment ideas provided is purely independent view point and are solely for collective learning and for academic interests. There is no commercial benefit accruing or have deemed to accrue to me out of providing such investment ideas.
- The investment ideas shared here cannot be construed as investment advice or so. If any reader is acting on these advices, they are requested to apply their prudence and consult their financial advisor before acting on any of the recommendations made here. I am not responsible to anybody in the event of profits and losses (if any) upon acting on such advice.
- I hope that our reader is aware about this well aware of the risk involved in trading in commodity derivative trading.
Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity future. I do not trade in CME future or OTC spot gold and spot silver.
NOTES TO THE ABOVE REPORT
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
- Follow us on Twitter @chintankarnani
- PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
- PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
- THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
- ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
- ALL NEWS IS TAKEN FROM REUTERS NEWSWIRES.
- TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE
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