Financial Weekly Horoscope for Week 24th October 2011

Weekly Financial Forecast For Week Starting 24th October 2011

In terms of astrological placement, following major positions are expected to play out this week:

Monday 24th October: Moon will be in Taurus
Tuesday 25th October: Moon will be in Gemini
Wednesday 26th October: Moon will be in Gemini
Thursday 27th October: Moon will be in Cancer
Friday 28th October: Moon will be in Cancer

Thursday 27th October is a New Moon Day and may evoke some strange movements in all financial markets with high volatility on upside and downside. Traders must be very careful with positions.

Forecast for Dow: The range for Dow now stands at 10400 to 11800. Sell On Rise remains a preferred option with some Call options as hedges

Forecast for FTSE: Range will be 4900-5400. Sell on Rise recommended. Positions should be taken with proper hedges

Forecast for Nifty: For Nifty, the range will be 4690 to 5328

Forecast for Euro-USD: Expect range bound movements between 1.31 and 1.42 during the week; Sell on Rise recommended [Until the New Moon effects and the new outcome of the European bailout fund movement, traders may do well to avoid trading in the Euro till the effects are known - there can be a sudden high jump to 1.45 or a sudden nose-dive to 1.2 as well - very volatile pair for the next 1 week]

Forecast for GBP-USD: Expect range bound movements between 1.52 and 1.58 during the week; Sell on Rise recommended

Forecast for USD-JPY: JPY may depreciate further vis a vis USD; Long positions closer to 76-77 can be profitable; Buy on Dips recommended

Forecast for USD-CHF: USD has grown tremendously last week with the rise in Dollar Index. Would recommend waiting for a suitable high and sell because a proportion of the rise will be retraced as a correction

Forecast for Gold: Gold is expected to remain range bound between 1525 and 1750; 'Sell on Rise' strategy is recommended. If the equities and other commodities witness a sell-off as expected, there may be a sudden mania for gold and it may try to go towards USD 2000. Since margin requirements have also increased, an appropriate strategy should be to build a long-short position pair via futures and then trail the position that is gaining. We would like to remind readers that current volatility is not healthy for traders and one should avoid playing with gold on the forex sites. Take positions with futures with your broker and ideally take a 3 months forward contract with some margin money to spare - eventual target for gold is 1450-1500 in the next 2 months.

Forecast for Silver: Silver is expected to fall back against a rising dollar and 'Sell on Rise' is the recommended strategy