LET THE MARKET TELL WHO WE ARE

Silver has been experiencing a strong down trend since it broke through the key support of 35000 which was also support line of a bearish flag continuation. Prices are now hovering near key support zones around 33400-33000. However, silver had witnessed some recovery on Monday and Tuesday but 2 days counter move is not enough to confirm a trend reversal. Today this metal has opened with a down side gap and staying below its opening price. We need a penetration of 33150 to confirm resumption to a larger degree down trend and then attempts towards 30700 zones can’t be ruled out. Stability below 33150 will also increase the possibilities of completion of CD leg (at 30700) of a bullish AB=CD pattern. Any move above 34200 might bring some recovery and then a jump towards 35200 can’t be ruled out. Any stability above 35200 zones might put this entire bearish setup in doubts where stability below mentioned resistance levels will keep on going down trend intact.

Nifty is currently trading at 8083. It had witnessed a sharp recovery in yesterday’s session after revisiting neckline of an inverse head and shoulder pattern. This chart is showing NIFTY’s love towards classic head and shoulder formation. Nifty is likely to stay in a range among 8000 and 8350. Areas of 8000 are supported by the neckline of an inverse HNS formation and 8350 are resisted by neckline of HNS bearish reversal pattern. Any confirmed breakout above or below these levels will clear the way for a bigger move. Nifty index has been experiencing down trend since March 2015 which has taken place in a channelized manner and currently we are trading in corrective leg of this bearish trend. Stability above 8000-7950 keeps nifty in short term trading range among 8000-8350. Any sustained move above 8360 will confirm resumption to longer term uptrend and then primary rally towards 8600 can’t be ruled out. Any failure of 7950 will invalidate current bullish move and then it will try to...

TECHM on NSE has been consolidating within an ascending triangle and stock is now witnessing some recovery from ascending trend line support of this pattern. Stock has witnessed multiple bottoms near 530 zones which is also supported by rising trend line and currently stock price has climbed above 20 days EMA which is also a supportive factor for short term bulls. Immediate support is now placed near 530; stability above this level keeps chances alive for a retest to resistance line of this triangle that stands near 578. Failure of 530 will invalidate this bullish setup and stock may witness retest to 510-480 zones. Based on the above setup, one can go long in this stock among 554-546 with stop loss of 530 for targeting 576 and more upside in coming days. Currently trading at 554.40.

Zinc is currently trading at 112.25 after hitting intraday low of 110.95. Counter had been moving in a nice down trend and formed a descending trend line breakout on October 9, 2015. Now this metal is fluctuating near its 30 days SMA that stands near 111.90 zones. Prices are getting support near 110.60 which is low placed during the month of August this year. A potential inverse head and shoulder reversal pattern can be seen clearly on daily chart. According to this pattern reversal will confirm above neckline breakout that stands near 123. Recovery from today’s low of 110.95 indicates buying interest in this metal. MACD is making higher top if compared with prices and suggests a hidden divergence. However, MACD has formed a bearish cross near center line but lack of follow through selling suggests a strong support near 111-110 zones. Price has stuck in a range and volume has shrunk that indicates low participation. Respect of 109 zones will result in a rally towards 122 and then 129 ...

NIFTY index has been witnessing a correction in a channelized manner after posting a life time high of 9119.20 during the month of March this year. Now index is moving in a corrective leg of this intermediate down trend. Recently nifty has headed a high of 8246.40 but failed to attract follow up buying after closing a full gap partially which was left during the month of August this year. On Monday, if this index manages to hold above 8250-8260 zones then it will try to head towards 8320-8360 to fill this gap completely. There is another small gap left between 8322 and 8360 zones and these areas are also resisted by 50% correction level of entire bearish move from high of 9119.20 to low of 7539.50. Presence of descending trend line near 8350-8360 zones will be a tough challenge for bulls. Price and time symmetry also hints a potential reversal from 8300-8350 zones. In other words, stability below 8260 will keep this index in a consolidation mode between 8100-8260. Recovery above 8260...

Gold is now trading at $1177.76 and testing its broken horizontal support that has flipped to become resistance now. Prices are staying within a potential rising channel and failing to attract further buying to confirm a breakout above the resistance line of this channel. Stochastic has reached in overbought territory and failing to make a new high if compared to August 2015 peak when gold headed a high of $1169.93. Divergence between price and indicator hints weakening of bullish momentum that may result in failure of current rally. Immediate resistance is now placed at $1192. Decisive closing above $1192 will neglect these expectations of a bearish reversal and then retest to $1204 and $1227 can’t be ruled out. If we get a confirmation above 1193 then next big hurdle will be around $1233. Support is now seen near $1174 and then at $1163. Key support remains at 1163 and stability above this support will keep this metal in a sideways mode between 1165 and 1190. Any sustained move belo...

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...