VIEWS FOR 16TH DECEMBER 2008

Releases CountryNameTime (GMT)ExpectationPriorComment
UKCPI and RPI figures (Nov)08:30 Should all be lower than exp.
USCPI figures (Nov)12:30Big drops drop Expectations overdone?
USFOMC Rate Decision 18:150.25%1.00%Analysts expect 0.50%

COMEX GOLD TECHNICALS:Yesterday's closing was above the 61.8% correction just as we expected. Gold may now enter an upside wave once again to take it to levels between 857.30 and 865.70 where targets are as far as 871.85 for the upcoming short term ascending channel. Initially, we see the metal needs a downside correction as seen on momentum indicators that show gold being overbought. However, as far as 822.60 remains intact, the metal may continue to incline.

COMEX SILVER TECHNICALS:A successful breakout of the key resistance for the sideways triangle resulted in the creation of a new upside wave. We see the metal trading within an overbought area on the momentum indicators yet as it breached the above mentioned resistance level, the short term upside trend will remain but could be volatile due to being overbought. Silver is targeting 11.05 as far as trading is above 10.25

NYMEX CRUDE TECHNICALS:A serious attempt in breaching the descending channel to the downside failed after crude returned to trade within the downside channel that has a resistance now at 46.00 whereas the 100 day MA on the one hour charts at 47.90 is gaining strength. Due to yesterday's incline, we could see crude extend its gains today once again to breach the mentioned resistance. An upside movement will not be confirmed unless trading remains above 48.50 or better yet, above 50.50 since the 50 mark was a strong resistance yesterday.The trading range for today is among the key support at 42.35 and the key resistance at 52.40

EVENING CALL BUY GOLD 12790-830 SL 12720 TGT 12920-12960-13000 ABV 13000 HIGHLY BULLISH TGT 13100-13250

SILVER BUY 17200-300 SL 17000 TGT 17500-17750

MCX Gold Feb: Corrective dips to 12793/12810 to find good support for the day and then rise higher towards 13075 or even higher towards 13226.Unexpected fall below 12700 to postpone the bullishness.S1: 12835 S2: 12650 R1: 12980 R2: 13105

MCX Silver Mar: As expected we saw a test of 17700 once again. Failure to close above this level decisively could lead to a sell-off again.Immediate supports are at 17354 followed by 17124. Unexpected fall below 16910 to accelerate the fall.However, a daily close above 17750 to bolster bullish expectations for a 19396.S1:17100 S2:16800 R1:17550 R2:17750

MCX Copper February: Failure to surpass 166.0 and a weak close to add to bearishness. Supports are in the 150.0/152.0 range now.Break below could lead prices lower towards 138.70/140.0 .S1: 152 S2: 148 R1: 160 R2:165

MCX Crude Oil Jan : First line of supports is near 2238/2248.5 followed by the next level near 2160/2181. Favoured view expects a rebound from any of these supports towards 2455. Fall below 2155 would hint that price could fall further towards the breakdown point at 2093.S1: 2285 S2: 2215 R1: 2400 R2:2460

MCX Zinc Dec: - As long as 50.5-51.0 levels support , expect prices to move higher towards 53.75-54.85 levels .Only a fall below 50.00 levels to negate this bearish view now.S1: 50.5 S2: 49.80 R1: 52.50 R2: 54.20

MCX Nickel Dec: Expect prices to find support at 475- 465 levels for a move higher towards 550 levels.A fall below 445 to cast doubt about this view. S1: 465 S2: 442 R1:510 R2: 532

MCX Natural Gas Jan :- As long as 266.0-263.0 levels support , expect prices to move higher towards 284-290 levels .However a fall below 258 would negate this bullish view.S1: 267 S2: 260 R1: 283 R2: 290

SPOT GOLD:: GOLDspot: Bias is +ve. $834 And 828 are entry points for rallies targetting 844-854-866. Break of 828 indicates bearish bias. Free fall below 820. Sup805/787/787 EXPECTATION : EXPECT SUPPORT TO HOLD FOR RALLIES