Posted By : Kishore B.S
Precious Metals Outlook:
As Envisaged during the article written a fortnight back on this precious commodity wherein it was stated and mentioned regarding the formation of a Flag pattern breakout after the metal closed above the 29400 mark on a Weekly basis. The charts above indicate that the pattern is still intact as long as the support level of 29400 is not breached on a weekly closing basis. Last week the metal closed precariously close to the support level around the 29500 mark just above the critical support level of 29400. With this view in mind it would be advisable to buy on dips for the metal if the same closes above the support level of 29400 for this week too with the conservative target of 31600 levels and further up to the 53800 levels in the days to come.
This precious metal seems to have lost the steam and flavor among the traders and investors at large. The declining pattern of the metal as earmarked by the channel in the chart above depicts that the metals has been lingering in the channel range for the last 3 months. The charts also are indicating that the metal might be forming a base whereby the breakout above the channel trend of 56400 on a weekly basis would turn the trend to bullish and a move down below the support trend line of 51300 could turn the trend to negative or bearish trend. Until the event happens a momentum within this trend line where the current price range varies between 51400 and 56500 could be used to trade on easy and comfortable basis.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)