Posted By : Kishore B.S
Weekly view on Precious Metals:
Gold which has remained range bound during largely during the last 10-14 sessions is on the verge of the upper side breakout above the Price level of 28660, giving a FLAG breakout pattern with likely target of around 29100 levels.
It would be advisable to remain long on GOLD with stoploss around 28400, a break down below which would pull the commodity back to the range bound momentum.
Silver has been largely range bound and holding on the support price level of 55000 strongly. And bouncing back to 57200 price levels once the support is held. Now it remains to be seen whether the support price barrier of 55000 would be held or broken to create the downward ruffle to 53400 levels or the range bound momentum would continue.
The technical charts are indicating continuation of the range bound trend with volatility for few more sessions and it would be advisable to build positions with adequate stoploss on either side of the range.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)