Longer Downfall in Crude and Gold- a T-A-X Analysis
By Kanti Mohan Pandit,
Center Business Intelligence & Forecasting 16th May 2011
The commodity prices have not remained steady towards one direction in May but the trends indicate downward movements. Gold price has moved below $1500 and Crude oil price also has moved below $100 after touches their new peaks in April.
From16th May onwards Commodity prices have lost certain important support strength for upward movement. This is ominous trend for traders and investors. They must be waiting for a new buoyant start soon considering the current downfall as a correction. I also wish they must enjoy the fruits of rising market in commodities particularly the precious metal and oil market. But energy profile analysis indicated otherwise. You must know that my market analysis is based on ‘Space Energy Profile’ present and operating currently or in the near future. The combination of three energy profile ‘T-A-X’ does not encourage higher price in the near future. The X energy factor, which was dominant till April to raise price has given in to the more powerful energy factor ‘A’, which does not support inflation in gold/silver and oil price. The present scenario in gold and oil price segment is therefore viewed as depressed. This falling price scenario in gold and Crude oil is likely to continue longer in May except system correction in between. I advise traders and investors to play cautiously.
