Posted By : Kishore B.S
Gold made an amazing upmove during the last week bouncing back exactly from the support level of 27800 to reclaim the peak of Rs. 29100 again. As witnessed time and again the commodity has been facing resistance around the 29400 mark and this level needs to be watched out for with caution.
Given the momentum of the Upmove which has been robust and huge some profit booking at current levels due to the jump could not be ruled out if the 29400 mark is not crossed.
This failure can be used to create some short positions with stoploss of around 29700 levels for targets of 28600-28400 levels. And if the 29400 levels is taken out then we could have a renewed bull rally to new highs of 29900 – 30400 which seems unlikely for now unless a Deepened Euro Crisis could spark shift to Gold buying spree.
Both silver and gold seem to be going in Tandem now since both correct and rise on equal footing on the trading days. Last week the Silver bounced back from the 51225 levels after touching the downward target of 53000 levels of the Downward trending channel.
The bounce was dramatic and robut similar to the one witnessed in the GOLD and now the charts are pointing the resistance is not far for the current levels and it poised at 55120 levels which could be the levels for the current Upmove rally.
A rally above that could trigger further buying to reach price levels of 56300-56800 levels easily and on the lower side 53000 levels need to be closely watched which if broken could drag the commodity into the channel range leading to targets of 50000 soon.