LET THE MARKET TELL WHO WE ARE

Today #NIFTY recovered nicely from 88.8% #Fibonacci_correction of previous bullish swing from low 8269.15 to high 8844.80 settled at 8429.70. Nifty has found support near the lower band of Bollinger and settled with a bullish pin bar/ hammer triggering possibilities of ‘W’ bottom near lower band. Possibilities of harmonic patterns bearish ‘Gartley’ and bearish ‘Crab’ have also triggered as market reversed from 88% correction of previous bullish leg ‘AB’ of this pattern. Immediate resistance is now seen near 8472 zones if market decisively holds this level then next possible resistance will be around middle band of Bollinger that stands near 8580. Further moves above 8580-8600 will trigger possibilities to complete #Gartley pattern that completes near 78.6% #correction_of_bearish_leg ‘XA’ at 8937. After that life time high 9119 will remain in focus and cross and close above that level will trigger the possibilities to complete bearish crab pattern that completes near 161.8% extension o...

NIFTY spot is currently trading at 8703. It has failed to climb above 8850 during 2 consecutive attempts and witnessed a nice sell off yesterday. Index has reversed exactly from 61.8% Fibonacci correction of a bearish swing from 9119.20 to 8269.15 triggering possibilities of AB=CD pattern in line with a probable head and shoulder reversal pattern. It has already completed leg ABC legs of AB=CD pattern and now leg D is due out that completes near 7994.75 zones. Potential head and shoulder pattern has a down sloping neckline and down sloping necklines has more significance than normal one. Failure of neckline is also occurs around 8000-7990 zones and decisive closes below those levels may bring a larger degree correction in market. Stochastic had also reached in extreme overbought territory and formed a bearish cross that is also supportive for short term bears. Currently nifty has strong resistance at 8850 any recovery above that level may help this index to move towards 8937-9000 zone...

Crude is witnessing a nice recovery after getting support near 2639 which was 113% Fibonacci extension of a bullish attempt from 2720 to 3340 that took place in February 2015. Harmonic shark pattern is clearly visible on daily chart. Currently crude is trading at 3366 staying above 3340, which was top formed during bullish attempts in February. Stochastic is staying above 50 and %K has formed a cross above %D in positive territory favours bullishness in this counter. If crude holds above 3366-70 zones decisively then it will increase odds for completion of this shark that completes at 3614 or 3861 zones. Any failure of 3100 may invalidate current bullish expectations.

  Today silver has headed an intraday high of 39090 but couldn’t sustain above 39000. When silver down in last week of January 39000 was the first reaction high placed during the first week of February. Now we are focusing on 39000 if silver manages to hold above that level then price objective for bulls would be 39700-40000. Key resistance for intermediate down trend would be 40600 and any sustained move above this level would increase the probabilities for completion of a harmonic structure which is widely known as bearish bat and than a rally towards 44000-44800 can’t be ruled out. Stochastic is loaded with strong momentum and stability above 50 hints bullishness for this counter. Areas of 37333 will remain in focus as trend support and any failure of this support would weaken the momentum and trend will turn sideways. Currently trading at 38848.

International spot gold is currently trading at $1208.70. Recently Gold witnessed a bullish breakout above descending trend line resistance but failed to climb above $1223 which was the high placed on February 19, 2015. Gold is now getting support near psychological level of $1200 and areas of $1190 are very strong support zones on daily chart. An inverse head and shoulder pattern is also visible on 240 min chart that has support at $1190 and neck line resistance at $1223 zones. Any sustained move above $1223 would call for a fresh rally that would help this metal to retest areas of $1240-1245. Key resistance would remain near $1260 and any closing above those levels would call for more upside. 14 periods RSI is staying above 40 and favouring bulls. 3 periods RSI has also climbed above 14 periods RSI which is also supportive for gold bulls. On lighter note stability above $1195-1190 zones remains bullish for gold and recovery above $1223 would confirm a rally towards $1245 zones where...

We all are waiting for union budget 2015-16 desperately and assuming whether government is going to reduce or not, import duty on gold and silver. If tomorrow government of India decides to reduce import duty on bullions then it will be a positive trigger for international precious metals. However reduced duty may impact domestic bullions market negatively but it would be a good bullish trigger for international bullion markets as cheaper import cost will attract importers that would initiate demand for these metals in international markets. For international spot gold areas of $1222-1224 are providing a stiff resistance once if it is taken out then we will see attempts towards $1240-50 zones. Currently gold is trading near $1215.   Feel free to write me at sunirathi@hotmail.com for any query regarding any trade.

Gold on mcx witnessed nice decline on Friday and headed an intraday low of 26681 and took support near Fibonacci price cluster that stands 26660-720 zones. Areas of 26660 are also supported by a rising trend line and oversold reading on stochastic indicators keeps chances alive for a potential recovery from 26700 zones. Today gold has opened with an upside gap and maintaining itself above previous closing price which is also a positive factor for this commodity. In past we have seen nice recovery from 26700 during bearish attempts and long legged candlesticks near that level hints a strong demand zone around these areas. We are expecting uptrend to remain intact until gold holds below 26660 zones decisively and attempts towards 27100-27300 and more upside can’t be ruled out. Any closing above 27500 would help this commodity to resume its on-going uptrend. Recommendation: Taking longs in gold around 26850-750 with top loss below 26550 (closing basis) for targeting 27200-27450 and mor...