MCX Gold and Silver are two highly traded commodities.
Most of the people like to trade these commodities as it exhibits
high volatility. However, sometimes it becomes very challenging to trade as
prices gets affected due to domestic
as well as global environment. The recent example is of the yesterdays
trading session, where we witnessed that Silver prices were moving higher and
on other side Gold prices were moving lower sharply. This may have created
confusion in the minds of trader as most of the time these both commodities
trade in sync with each other.
Technical analysis works very in both commodities
but in this channeling environment it is better to use intermarket relationship
which can save traders from any kind of false break or speculation. We have
been constantly gauging the relationship of USDINR, Comex Gold, to get an idea about the upcoming trend.
This is not enough as relationship of EURUSD
with Gold is even working very well.
We have been publishing daily research on Gold
before the market opens. The below is the part of research which we published
in the morning of 23rd January 2014, taken from “The Commodity Waves STU”, explaining
our bullish stand on Gold although prices were moving lower in small downward
Gold 60 mins chart: (February contract)
For MCX Gold, in yesterdays update we mentioned that, “The one of the reason behind this is of
USDINR depreciation which has bounced back from the support level and moving
higher. We have often seen due to depreciation of currency, Gold and Silver
prices moves higher.”
In the last trading session, Gold and Silver prices continued to move in
the range bound movement due to depreciation of USDINR. Now, for USDINR arrived
near the very important resistance 62. So, it will be crucial to see whether
prices will be able to take out this level in coming trading session or not. If Indian currency takes out 62 level on
upside, then we may see upside in Gold and Silver prices. On the other side,
Indian market is in the topping process, so any downfall in market may create
the pressure on the USDINR and accordingly strength can be seen in bullions.
As shown in 60 mins chart, prices are moving lower in the small downward
sloping red channel within the upward moving channel as shown by red color. As
per wave perspective, the entire down move from the 29350 looks corrective in
nature. Now, on upside 29250 is the resistance level and move above this level
can take prices towards 29400 where the resistance is in place. Whereas, on
downside 29000 is the important support.
This is the
research part only. During the trading session we even provided buy call when
prices were moving lower.
GOLD FEB: BUY ABOVE 29120, WITH STOP LOSS OF
29000, TARGETS: 29300 – 29400 - 29500 CMP:29065. TIME: 3:28PM
trading session we achieved target. Now question arises, will it break resistance? What next
from here on? On 28th – 29th Federal Reserve meeting is
coming for adopting stand on tapering of its Bond Buying Program. High
Volatility is expected in next week. Don’t trade on news and get support from
our research team to trade in the right direction or subscribe to “The Commodity Waves STU”
includes research on MCX Gold, Silver,
Crude and Copper with important levels.