LET THE MARKET TELL WHO WE ARE

Nifty has been moving in a nice uptrend and closed with a hanging man candlestick pattern in yesterday’s session. Stochastic is producing overbought reading which is marked by green line and preventing fresh bulls to jump in aggressively. Today areas of 7700-7705 will remain important to watch and any closing above that level would extend current bullish move towards 8000 whereas closing below 7700 will be responsible for a short term correction and we may see a retest to 7400-7300 zones in coming days. Currently trading at 7640.

Crude oil has been moving in a descending triangle that can be seen clearly on chart provided above and now trading near descending trend line resistance of this triangle which is around 6150. Commodity has also climbed above its 50 days SMA and 10 days SMA is also ready to climb above 50 days SMA that is also a bullish sign overs short term time frame. MACD has given a bullish cross above signal line and now fluctuating near zero line and further stability above zero line would trigger strong bullishness in this counter. Stochastic is also getting support around 50 and now getting ready for a bullish cross that indicates strengthen bullish forces in this commodity. Immediate support is now placed near 6050 zones any failure below this level would neglect current bullishness and then commodity will try heading towards 5950 zones and closing below 5950 would bring 5800 and more down side. Stability above 6050 remains bullish for this commodity and any closing above 6200 would bring 6...

An inverse cup and handle pattern is clearly visible on hourly chart of Crude oil MCX. Commodity is now attempting to breach key support zones of 5980-5960 that would result in resumption to proceeding down trend. Commodity couldn’t sustain above 6060 zones and witnessing a nice selloff during today’s session. Resistance for current move is now placed at 6060 any sustained move along with closing would neglect our bearish expectations and then we may see attempt towards 6140 and more upside. Stability below 6060 remains bearish and closing below 5960 would result in a decline towards 5650-5500 and more down side in coming days. Recommendation: selling crude on jumps around 6010-6030 with stop loss above 6060 on closing basis for targeting 5800-5650-5500 and more down side might be appropriate in short term.

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 o...

Natural gas jumped nicely after hitting areas of 258. Areas of 257 were strong resistance during the month of September 2013 that is now serving as good support. Today’s trading range is covering yesterday’s range on daily chart that qualifies as a valid bullish engulfing reversal pattern. If today commodity closes above 265 zones then it will attract more bulls and a rebound can’t be ruled out in coming days. Stochastic is now producing oversold reading and preventing fresh bears to jump in. Recommendation: Buying natural gas around 265-263 with stop loss below 259 for targeting 271-276-280 and more upside might be appropriate in short term.

Silver spot has been trading in a descending parallel channel and now breaking through rising support of ascending triangle pattern within this channel indicating resumption to bearish direction. However a bullish crossover has happened on short term and long term moving averages but no follow up buying seen and reversal occurred from resistance line of descending channel. MACD is hovering near zero and any move below zero would be added advantage for silver bears. Immediate support is now seen near 19.40 and any failure below this level would call for a retest to 18.90 zones. 18.30 zones. Key support remains at 18 and any failure below 18 would bring 17-16.70 on cards. Resistance is now placed at 20.10 and then at 20.60 any sustained move above 20.60 would neglect bearish expectations in this metal and then recovery can’t be ruled out for retest to 22 and more upside. Recommendation: selling silver on jumps around 19.70-19.90 with stop loss above 20.30 for targeting 18.90-18.30 and ...

Nifty spot is getting good support near 6130-6100 zones and has witnessed a nice jump from those levels. A potential rounded top is clearly visible on daily chart of Nifty that hints the weakening momentum but weakness is not yet confirmed by price action and technical indicator MACD. As we can see in chart provided above MACD has given bearish cross below signal line but holding above zero line that favours 6100 as very crucial support. Any failure below 61000 would confirm weakness in this index and then primary target for bearish swing would be support placed in November 2013 that was around 5965. In general stability above 6100 remains supportive for Nifty bulls and sustained move above 6355 would bring more charm. Recently Index has broken out above the neck line of inverse head and shoulder pattern that suggests a target for 6700 for current swing. Overall this rally is open for a retest to 6700 zones. Any failure with closing below 6100 would neglect this bullish outlook and th...