LET THE MARKET TELL WHO WE ARE

Gold on MCX currently trading at 26278 it has witnessed a nice recovery after hitting a low of 25900 during recent bearish attempt. Gold had broken a descending trend line resistance on August 20, 2015 but couldn’t attract smart money and a nice sell off took place after printing a swing high at 27833. Prices were fluctuating just below 40 days EMA after forming a bullish cross over by 10 EMA during the month of August. Now 10 days EMA is staying above 40 days EMA that that qualifies a bullish trigger. Stochastic had reached in oversold territory and now it has formed a bullish cross and trying to recover from oversold territory. Once again stochastic has entered in oversold territory whereas prices are staying above 62% correction level of the swing that occurred from low of 24661 to high of 27833. This relation between price and stochastic indicator suggests a bullish divergence. Price action on chart maintains its bullish bias that was established by a bullish swing during the mont...

Nifty spot is currently trading at 8259, and this is the last session for the week ending on August 21, 2015. Today nifty has broken through the key support of 8355 established by a strong trend bar during the week ended on July 17, 2015. Possibility of a head and shoulder top reversal pattern is also visible and nifty has reversed from the height of the left shoulder and triggering possibilities of a head and shoulder reversal that will get confirmation if nifty manage to hold below its neckline around 7950 in coming days. As per current scenario market bias has turned bearish as prices have fallen below 20 weeks SMA and likely to settle below the same. Now areas of 8190 are a minor support if bulls manage to protect this level then we will see a consolidation among 8200-8500 in short term. Failure of 8190 will put focus back on the neckline support of this reversal pattern at 7960 and any weekly close below this level will offer a retest to 7200-6800 zones. A healthy correction is a...

Gold on mcx has opened with an upside gap and heading higher since its opening and currently trading at 26441. It has climbed above its down sloping trend line resistance and now approaching towards a congestion zone that stands around 26490-600 zones. Areas of 26540 are also resisted by 200 period’s simple moving average on daily chart. Stochastic has reached in overbought territory and may bring a temporary pause or correction near key resistance zones around 26540-600. Any sustained move above 26600 with 2 or more consecutive closes will supply more power to gold bulls and then we will see this metal heading towards 27000-27400 zones. Recommendation: one can look for selling opportunities near 26540-600 zones with a stop loss above 26870 for targeting 26200-25900-25450 in short term.

Gold on MCX has witnessed a nice decline in today’s session and it has headed a low of 24451 for the session and currently trading at 24550. As we can see on chart provided above a three pint bullish divergence is clearly visible on MACD and RSI indicators. Recently we have seen a bullish engulfing candle on hourly chart that hints possibilities of a bullish setup here. Considering current scenario favorable for a bullish trade on can look for a long trade in gold near the areas of 24530-500 with stop loss below 24450 for targeting 24670-24750-24870 and more upside.

Natural gas had witnessed a nice bullish attempt from low of 155.40 to high of 198.30 and then started consolidating in a symmetric triangle. Recently it has climbed above the down sloping trend line of this symmetric triangle. Prices are also getting support near 20 periods EMA. MACD has climbed above zero line and staying above its signal line that also hints positivity in this counter. 3 bar pull back setup is clearly visible on daily chart. Today natural gas is trading with positive bias after staying negatively biased for last 3 days. Recommendation: Based on the chart and explanations above buying natural gas around 182-180 with stop loss below 177.50 for targeting 195-205 and more upside might be appropriate in short term.

Nifty has been trading in a down sloping parallel channel and selling pressure occurred near the upper line of this channel. Once again nifty is showing some strength after completing 3 bar pullback on daily chart. 20 days EMA is providing good support to bulls and now nifty is trading above its 5 days EMA that stands near 8396. Stability above 5 days EMA indicates strengthening bullish momentum. MACD has climbed above center line and now it is testing its signal line from above. MACD reading above zero line remains supportive for nifty bulls. Based on 3 bar pullback setup today nifty has triggered a buy trade by crossing Friday’s high and suggests continuation in on going uptrend. Areas of 8390 and 8340 will remain crucial to watch out. 2 or more close below 8340 zones will hurt this bullish setup. Resistance is now seen near 8560 and then at 8800 zones. Currently trading at 8432. Recommendation: Fresh entry can be taken on declines near 8400-8370 with stop loss below 8300 for targ...

Silver has been fluctuating among 34000 and 41000 from last 6 month. Recently it has headed a low of 34011 on Tuesday this week but that day’s price action was neglected by yesterday’s bullish price action and silver settled with an inside bar on daily chart. Today we have seen a nice recovery after a breakout above 35167. Stochastic has recovered form oversold territory but struggling to cross above 40 and remains supportive for silver bears. MACD is also staying below centerline and its signal line that hints a down trend but MACD is getting closer to its signal line that hints weakening bearish momentum. Prices are staying below 20 days EMA that hints a down trend in this metal. As per current setup we are expecting silver to remain in positively biased sideways trend until it manage to break and hold below 34000. Key resistance remains near the areas of 36450-500 zones any sustained move above this level will bring some charm and then silver will trigger possibilities to retest th...