Posted By : Kishore B.S
Precious Metals outlook for the week:
Gold has been failing to cross and hold above the important down trending line at 28700 and only a move and closure above that could take it to newer rally with possible targets of 28850-29200 failing which some Profit booking to 28340-28000 levels cannot be ruled out.
The indicators are also pointing out that some profit booking at current price levels cannot be ruled out. It would be advisable to short at current price levels with likely stoploss of Rs. 28800.
Silver has been highly volatile in the last few sessions gyrating between 57700 and 55000 levels, this range momentum has been forming downward trending triangle a breakdown of which at 54800 is likely to trigger a downfall upto 53000 levels for the commodity.
The indicators are firm and neutral for the time being watching out for the range bound momentum to break which would confirm the downtrend.
Traders can make use of the this opportunity to short on rallies with likely stoploss of around 58000 levels which would negate the downtrend.
(Inputs Mr. Hemanth V, Faculty TA, Stock Market Institute, Bangalore)