Posted By : Kishore B.S
SMI Precious Metals outlook:
Gold Technical Chart
Gold has been range bound for the last 4 trading sessions between 27700 – 28150 and the technical charts indicate that the range bound movement is likely to continue further too with some more gains to 28400 -28600 levels on the higher side.
On the lower side if the support level of 27700 is broken further weakness to levels of 27000 cannot be ruled out. It would be advisable to short on RALLIES with stoploss of 28650.
Silver Technical Chart
Silver charts are indicating range bound momentum after the fall last week and the consolidation can give breakout on either side.
Going purely by Technical Indicators, Silver looks to break down in the next few days to Price levels of 55000 if the support price of 57000 is broken and the upmove is likely to face stiff Resistance at 59500 levels. It would be ideal and advisable to follow the strategy of SELL on RALLIES, with likely STOPLOSS OF AROUND 59800.
(Inputs from Mr. Hemanth .V – Faculty TA, Stock Market Institute)