LET THE MARKET TELL WHO WE ARE

Gold April contract has broken longer term rising trend line on daily continuation chart and now fluctuating near support line of longer term rectangle which stands around 30700 zones. Gold bears need to show more power very soon by producing closing below 30650 zones for 2 consecutive days. Respect of 30650 may witness a recovery from current levels and a bullish attempt towards 200 days EMA, which stands at 31150 can’t be completely ruled out. 14 Periods RSI hovering near potential support of 30 and may help bulls to produce some bullish momentum. Over sold reading on stochastic may trigger higher fluctuation and may help bulls to push this metal higher towards areas of 31000. A majority of Technical indicators suggest bearishness in this metal but entering near areas of 30730-680 zones may be worth buying with a closing basis stop loss below 30600 for targeting 31000 and more. Closing below 30600 would trigger further weakness and a dip towards 30300 and then 30000 is likely.

Nickel February contract is looking very attractive on scale and it is likely to rally towards 1100 in coming days, areas of 990 are acting as strong resistance. MACD is hovering near zero line and giving a bullish cross over which would trigger a strong bullish momentum in coming days. appearance of CUP and handle pattern is also added advantage for nickel bulls and sustained rebound above 990-1000 zones would call for 80-100 rupees upside rally. Recommendation: Traders can look for buying opportunities in this commodity on decline around 960-940 with closing stop loss of 930 for targeting 1080-1100 in near term.

Here is the daily continuation chart of NATGAS MCX January contract which is getting support at rising trend line around 188 and resistance at 196.40, RSI on daily chart suggest more weakness in this counter and sustained declined below recent lows 182 would offer areas of 174 and 165 as primary supports. Previous closing was 188.70, resistance will remain at 196 and bulls need to produce minimum 2 closes above the same to claim their presence.

Gold approaching down sloping trend line of descending parallel channel and 50 EMA on 240 minute chart and testing lower line of bearish flag within this channel. Gold bulls need to show more power to establish a bullish direction above 1730 zones. Stability below 1730 still looking supportive for bears and whipsaw trades may trap both sides. MACD hovering under zero line supports a bearish trend and stability needed above 1730-35 zones to neglect the bearish signals.

As we can see here in the chart provide above silver is holding the recent gains above 50 weeks exponential moving average and has covered previous week’s losses during the 2nd trading session of current week. Now silver bulls need to show more power to establish a bullish direction above areas of 32.70 to signal a bullish attempt that would help this commodity to jump towards areas of 34.30 and more upside. Failure of recent support, which is placed at 30.70, would signal a deeper correction towards 28-26 zones. MACD is losing its bullish momentum but hovering above zero line supports a bullish direction. 14 periods weekly RSI getting support at 50 line considered as bullish sentiments. Outlook will remain bullish in case of stability above 30.70 while failure would neglect these bullish expectations. Cross and close above 32.70 would be added advantage for silver bulls.

Natural Gas closed at 152.30 down by 3.80 paisa yesterday after positive inventory data released by EIA which came 47B up by 27B against 20B prior. Yesterday’s fall was supported by 100-EMA and ascending trend line  at 149 otherwise it could lead further losses. immedaite resistance seen at 160 continue trading above this leve would signal recovery in this counter. support will remain at 149 breach of support would offer 142-137 as primary targets. recovery above 160 would signal resumption in uptrend and for likely targets 190-220 in short term Supports: 149/135 Resistances: 161-184 Recommendation: buying natgas above 161 for targeting 190-210-225 with stop loss below 154 might be appropriate.

Download our Newsletter for Intraday Market outlook Click here