Fresh Technical Developments on Gold MCX Charts

Gold has been trading in a rectangle ranging among key support of 28200 and resistance at 30800 from past 7 months. Recently commodity has broken through the support of 28200 and headed a low of 27770 during bearish attempt but couldn’t get enough selling forces and climbed back above 28200 in next trading session. Today again Metal faces selling pressure near 38.2% Fibonacci retracement of entire bearish swing from high of 30737 to a low of 27770. MACD has given a cross above signal line but holding below line zero that indicates downward momentum in this commodity. 10 days SMA is also below 40 days SMA that qualifies as a sell signal based on moving averages. Immediate support is now placed at 28200 any sustained move below this level would confirm resumption to preceding down trend and then commodity will try hitting 27800 zones as primary target whereas further stability below 27700 would result in a decline towards 27200-26100 zones in coming days.

Recommendation: Selling gold on jumps around 28750-850 with stop loss above 29000 (closing basis) for targeting 27800-27200-26100 and more down side might be appropriate. Currently trading at 28580

Comments

LIC Housing Finance; time for bulls?

LIC HOUSING FINANCE settled at 321.90 up by 5.78% on Tuesday. Stock had been staying in a consolidation phase that took shape of an ascending triangle and in today’s session it broke through the resistance line of this triangle consolidation and settled well above key resistance of 312 suggesting dominance of bulls. Stock has been staying above its 9 days SMA on daily chart keeping a short-term bullish trend in picture. Stochastic is now approaching overbought territory along with bullish cross above its signal line suggesting a strong bullish momentum. MACD has been staying in positive territory and now its parting upward from its signal line suggesting development of fresh bullish momentum. Direction and momentum are two important components for any chart to anticipate future price movement and current trend and momentum on chart provided above is suggesting bullishness. Breakout of triangle pattern can be used to determine potential destination for current move and if th...

Will Exhaustion Gap Halt the Down Trend in Nifty?

In this video we have explained what NIFTY is likely to do in next few sessions.

Nifty Options Weekly Expiry; MAX PAIN stands at 13400

#NIFTY #INDEX currently trading at 13438, down by 90 from previous close. Today index has opened gap down and taken out the low placed yesterday at 13449 triggering primary weakness in market for the day. Immediate support is now placed at 13390, retest to this level can’t be ruled out but stability below 13390 will result in to further weakness and then attempt towards 13350-13310 zones can’t be ruled out. Key support will be at 13300 and further stability below that level will bring more weakness. Resistance is now placed at day high which stands at 13488, any sustained move (Less likely) above that level will bring some relief to bulls and then attempt towards 13540-13590 can be seen. On #option_chain heavy #call_writing is being done at 13500-13600 strikes where as short covering is visible in 13450 and 13500 puts whereas longs build up seen in 13400 puts with high volume. Based on current #OI position level of #option_pain stands at 13400 thus based on current data at 10:52AM...

LET THE MARKET TELL WHO WE ARE

Search This Blog