Posted By : Kishore B.S
Hi Friends !!!!
Gold has been in the consolidation phase for the last few sessions with the commodity moving between the price range of 28740-29160 which is very tight and narrow. The consolidation can be seen in 2 different angles for traders and investors alike.
The first angle would be to short with stoploss around 29280 levels on rallies above the 29000 mark so that small profits can be booked around the 28800 levels and another strategy or angle would be to go long above the 29280 level with likely target of 30140.
However it would be advisable to follow the strategies discussed with strict losses since the range bound momentum could be broken out any time and the strategies discussed would hold only if the eventually happens.
Of late both the precious metals seem to be moving in tandem to each other complimenting each other with their upmove and downmove both.
The technical chart of Silver bears resemblance to Gold where Silver has been moving between the price range 53300 to 55100 in the last few sessions. Any breakout on either side could lay down the direction of the commodity for the long term.
However for the short term traders it would be ideal to short around the 54800 levels with stoploss of 55240 for target of 53600 levels easily and if the support level of 53300 is broken then the previous low of 51800 could be reached soon.
On the brighter side if the commodity breaks out on the higher side above the 55240 level it would be advisable to go long with likely targets of 56400 and stoploss of 54900 in the days to come.