Posted By : Kishore B.S
Precious Metals Outlook:
The metal Gold has depicting in the Graphs above have in the downward trending channel from the last few sessions after witnessing the dramatic upmove from the 29000 levels to the 30300 levels.
The metal has been moving in this channel and has been indicating that the trend for the short term could be negative which could stop out around the 29200 levels which is a good support zone to watch out for and could easily rally back to the 29800 levels which is the upward resistance zone.
This channel can be used by traders and speculators to trade cautiously with adequate stoplosses for some quick profit booking.
Silver was in the downtrend for the last few sessions whereby the commodity had not been able to cross the resistance levels of 55400 earlier and then drifted on the downside to the support zone of the 51700-5200 levels.
It would be important to note that the commodity has bounced back solidly everytime it has touched the 51700 levels signifying that the support is genuine and solid and should be bought into.
After the bounce from the lower support level the commodity has also done another important thing of crossing over the downward trend resistance level of 52700 and the next resistance now emerges at the 53800-54000 mark which seems very likely achievable and if it crosses the 54000 mark could easily scale further up the crucial resistance zone of 55400 in the days to come.
It would be ideal to buy this commodity on dips with stoploss of 51000 for target of 53800-54000 in the days to come.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)