VIEWS FOR 17th DECEMBER 2008

GOLD TECHNICALS:The targets indicate yesterday were reached where the metal was able to hit the 76.4 percent correction for the trend illustrated above at 857.30 - 858.20. Gold is now at a critical area where price is being affected by three resistance levels at 857.30 , 865.70 and finally 871.75 where these levels could end the upside wave and reverse the trend to the downside but needs to be confirmed by a daily close below 822.60. Currently, we advise cautious trading giving priority to the upside movment due to the support level at 836.40 which could be a good demand point to result in reaching further upside targets yet the end to this wave is near.

SILVER TECHNICALS;Finally, the target at 11.05 was reached and the metal is now trading above this level where it is also at a critical area since a daily close above the mentioned level will open the way to 12.65 whereas a reverse to the downside will take silver to 10.53 at the very least.

CRUDE TECHNICALS:Crude failed to confirm the upside direction where from there it will continue to decline as far as trading remains below 50.50. Despite several signals of an incline, we still need to see confirmation. Today we expect trading to be sideways but at anytime we could witness a sharp decling below the 40 level if crude isn't able to build a solid base above 48.60 oday or in the upcoming days.

EURO TECHNICALS:A vigorous upside movement neglected the fact that the pair was being overbought and as a result reached the 50% correction for the downside wave that started on 15-7-2008 and ended on 27-10-2008 at 1.4185. At the same time, we see trading is still above the 161.8% as seen in the image where this level is at 1.3945 and has become a key support for the pair. The chance is still opened for more gains yet as momentum indicators show that the pair is being overbought could result in high volatility and therefore trading today could be disrupted by a downside correction yet the overall trend is still to the upside depending on 1.3945 and the key support for the ascending channel at 1.3780.
Recommendation Buy the pair above 1.3960 with targets at 1.4315 and stop loss below 1.3815

MCX Gold Feb: As expected we will see rally towards 13245 as spot gold is strong. Corrective dips to find support at 12925 levels now.Very important support is at 12860 now for a possible test of 13553. S1: 12835 S2: 12650 R1: 12980 R2: 13105

MCX Silver Mar: Break and close above 17702 has resulted in a bullish reaction as envisaged. Supports are at 17981 followed by 17669 now.As long as 17653 hold, we can expect a gradual test of 20051.S1:17200 S2:16900 R1:17750 R2:17950

MCX Copper February: Still dangling for direction. Failure to surpass 165.8 and a weak close to add to bearishness.Supports are in the 150.0/152.0 ranges now. Break below could lead prices lower towards 138/139 .S1: 148 S2: 144 R1: 158 R2:162

MCX Crude Oil Jan : While above 2285 a hesitant rise towards 2414/2430 or ideally towards 2477 is anticipated.From there it could start falling again towards 2272 or lower. Rise above 2495 would be a bullish sign.S1: 2285 S2: 2215 R1: 2385 R2:2425

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 Lead Dec: Supports at 46.50 levels . Expect dips to find support at these levels for a move higher towards 50.0 levels .A break below 46.50 would take prices lower. S1: 46.50 S2: 46.00 R1: 48.00 R2: 49.15

MCX Nickel Dec: A break below 460.0 could take prices lower towards 445-450 levels . Important resistance at 478-485 levels. S1: 450 S2: 435 R1: 480 R2: 505

GOLDspot hit a high of 859.95 Overnight.866-950 Are next targets. But favoured view expects dips initially esp if 848 fails to hold. 834 Is a buying level. Weakness start below 828. Sup820/805/787/778

RUPEE strengthens to 1 month high after US Fed cut. USD/INR47.3850 (1.14%). Due to this global counters' gains would look smaller than its international counterparts.But expect 47 to hold

BUY ON CORRECTIVE DIPS 10.95-10.63 SL 10.40 TGT 11.51-11.83-12.30
BUY GOLD 12950-12980 SL 12900 TGT 13100
GOLD: BUY AT 848 OR ON DIP TO 838 SL 830 TGT 871-888 IN COMMING SESSION