I am kind of a stubborn person. I will prefer to use a buy-on-crash strategy in gold. I will prefer to use all price fall up-to $1700 to invest for FOMC meeting on 22nd September. I will prefer to remain on the sidelines in silver. A safe play will be to go long in silver if it trades over $19.00 in USA session any day with strict trailing stop loss.
Copper and all base metals will see a technical breakdown if they fall today and tomorrow. London opens after a holiday. There will be position squaring and rebuilding by UK traders for Friday’s US August nonfarm payrolls.
Trading volumes will rise in precious metals and base metals as the week progresses and in the month of September. I expect some energy trading volumes to shift to precious metals from next week.
The pit stops for traders are (1) US August nonfarm payrolls on 2nd September. (2) US August CPI and PPI numbers on 13-14 September. (3) FOMC on 22nd September for Asia. All US economic data releases in the September month have to be on the lower side for the US dollar index to crash or stocks to be in a bullish run.
Day traders and jobbers remain on the sidelines today.
COMEX GOLD DECEMBER 2022 (current market price $1747.00)
- Key intraday support: $1729.20
- Key intraday resistance: $1770.10
- Gold has to trade over $1740.00 to rise to $1770.10 and $1780.90.
- Gold will crash only if it trades below $1740.00 between 2:00 pm Indian Time and 8:00 pm Indian Time to $1729.20 and $1708.80.
NYMEX CRUDE OIL (October 2022) (current market price $96.70)
- 50 day MA: $97.26
- 100 day MA: $103.80
- 200 day MA: $96.90
- Crude oil has to trade over $95.50 to rise to $100.10 and $103.30.
- There will be sellers only if crude oil trades below $95.50.
- A daily close over $97.26 or fifty days simple moving average till next Tuesday will pave the way for $114 and $132.
- The next week is very crucial for crude oil from a new yearly high perspective.
MCX NATURAL GAS SEPTEMBER (current market price Rs.732.00)
- Key intraday support: Rs.688.90 and Rs.728.10
- Key intraday resistance: Rs.770.70
- MCX natural September will crash if it trades below Rs.728.10 to Rs.710.90 and Rs.688.90.
- MCX natural gas September has to trade over Rs.747.00 to be in an intraday bullish zone and rise to Rs.770.70 and more.
- There will be very sharp two-way price moves in NG. But if the price falls then Rs.688.90 and Rs.668.30 are the targets by Thursday’s close.
- I am against leaving any long positions in MCX Ng for the next trading day.
(prices in Indian Rupees above).