Posted By : Kishore B.S
Precious Metals Outlook
Gold has been moving in very narrow price range from last 2 weeks and consolidating all the while without much direction. There were huge swings in the last week during the budget and RBI meet sessions apart from which the momentum has been very narrow limited to just around Rs. 200.
The technical charts are indicating that there is likelyhood of the commodity to breakdown to Rs. 27000 levels in the short term and that price would act as the intermediate buying support. A breach below that level could lead to further downside upto Rs. 26840. The idle strategy should be to sell on rallies and book small profits since the range is too narrow.
This precious commodities has been highly volatile from last few sessions and has been tending southwards continuously failing the sustain the upmoves. The trend is likely to follow for few more sessions with Rs. 58108/- emerging has a good resistance price range for the upmove and the charts too indicate that some more downside to Rs. 55600-54700 cannot be ruled out in the short term.
(Inputs: Mr. Hemanth V, TA Faculty, Stock Market Institute)