LET THE MARKET TELL WHO WE ARE

Head and shoulder top reversal pattern is appearing on Gold MCX daily chart. Gold has broken the up sloping neck line support of this pattern and now retesting that broken neckline near 27900 zones. Metal has placed immediate support around 27550 further stability below this level would attract more supply in this commodity and then a retest to 27200-26800 zones may take place. MACD is hovering near zero line and getting ready for a bearish cross below its signal line that would bring strong bearish momentum in this commodity. Recommendation: Selling gold on jumps around 27850-900 zones, with stop loss above 27950 (closing basis) for targeting 27300-26900 might be appropriate for short term. Currently trading at 27782, traders are advised to enter in said range only.

Potential inverse head and shoulder pattern is appearing on NYMEX crude daily chart, which has neckline resistance near $97.50. Sustained move above 97.50 would signal continuation in bullish trend and then a primary rally would take it to 105-107 zones. Supports are now placed at $93.40 and $90 levels. Any failure below $90 dollars would neglect recent bullish developments and then counter may again turn sideways. MACD has given a bullish cross over and has been moving above zero line which indicates bullish momentum. 14 periods RSI is also moving in bullish territory. Recommendation: buying crude above 98 with stop loss below 93 (daily closing basis) for targeting 103-107 might be appropriate in short term.

Nifty has completed its all primary targets after failure below the neckline of head and shoulder top reversal pattern. Today’s gap down opening with spinning top candlestick pattern near lower band of Bollinger with oversold reading on stochastic indicator hints a possible recovery in this index. If index manage to open gap up tomorrow then short covering may help this counter to fill the gap and closing above 5730 zones would activate buy signal based on Bollinger band trading system. Recommendation: buying nifty above 5730 with stop loss below 5690 (closing basis for targeting 5800 and more upside might be appropriate in short term.

A classical head and shoulder reversal pattern has appeared on NIFTY daily chart which has broken its down sloping neckline support. According to this breakout primary targets for NIFTY spot would be around 5720-5700 zones. Pattern appeared with down sloping neckline and such kind of patterns are considered more powerful then flat or up sloping necklines. Traders can look for selling opportunities on jumps during the retest to broken neckline around 5940-5960 zones. Recommendation: selling nifty on jumps around 5940-5960 with stop loss above 6000 on closing basis for targeting 5720 and more down side might be appropriate in short term. Note* Levels are based on Nifty Spot analysis, Kindly adjust premium or discounts while trading Nifty Futures.

Here is the daily chart of ZINC MCX showing rounding bottom which is considered a bullish reversal pattern. Commodity has been trading in ranges of 100-104 for more than 40 days. Today metal has broken out its key resistance of 104. A bullish continuation candlestick pattern named rising three Method has also appeared recently which is a trend continuation pattern. As per current developments we can say areas of 101.50 has become strong support and stability above 104 on daily closing basis would bring 106.90 and 108 on cards. 14 periods RSI is also moving up along with bullish divergence. RSI producing 62.55 reading and reading above 50 is considered bullish signal. Recommendation: Buying zinc on between 104.10-103.80 with stop loss below 101.50 for targeting 106.90 and more upside might be appropriate in short term, currently trading at 104.25

Sign of potential double top has seen in Natural gas MCX hourly chart. As shown in chart above commodity has been fluctuating near its 23 days old resistance at 238.50 but couldn’t hold the gains above the same to confirm a bullish breakout. As we can see in chart provided above commodity has broken a steeper (green dashed) trend line and now getting support at another (black) trend line which is supporting the areas of 234. At the same time bearish divergence has seen on MACD daily chart which indicates weakening momentum in this commodity. Now trader’s eyes will remain on the areas of 234 and any failure of this level would bring a retest to 231-226-221 and more down side. Stability above 238 would keep bullish scenario intact and then commodity would lead a rally towards 242-247 and 270 zones over the midterm time frame. Recommendation: Selling natural gas near the areas of 236-238 for targeting 231-226-216-206 with stop loss above 239 on daily closing basis might be appropriate....

Here is the example of Inverse head and shoulder bottom which appears on Lead MCX daily continuation chart. As shown in chart above recently metal has broken out above its neckline resistance at 112. During yesterday’s decline leaded did an intraday low 112.10 but couldn’t break that level because of existence of neckline resistance which has now turned support. As per the depth of this pattern lead is now likely to hit 120 in coming days. Areas of 118.60 are the 50% Fibonacci retracement of previous bearish that may work as good resistance. Support is now seen near 112 and 2 or more closing below the same may hurt our bullish expectations and then failure of inverse head and shoulder pattern may occur. Recommendation: Buying lead between 113.60-112.50 with stop loss below 111.50 on daily closing basis for targeting 118-120 might be appropriate in short term currently trading at 113.90.