Posted By : Kishore B.S
Precious Metals Out look:
After the Upmove made during the last week on back of uncertainty in the global markets and also the Buying Spree in the Indian markets on the Akshyatritiya season, the commodity has been facing some resistance at the 29400 mark due to lack of buying interest at the higher levels.
With this failure of the commodity to scale up further some cool off to lower levels on account of profit booking and selloff. The downside can be to 28600 levels where some buying interest could set in on account of the ongoing wedding Season in India. And also support at the 28500 mark coupled with Global Economic unrest. If the commodity fails to take support at that level it could further dip to the 28000 mark where strong support support emerges.
However the negative trend would be negated if the commodity were to move above the 29200 level again beyond which the upper target could be 29800-30400 in the days to come.
This commodity which has been range bound with the trading channel as marked between the blue lines in the charts above has been largely in the downward trend for the last two months.
Yesterday though commodity has moved above the range yet the same has been due to the expiry of the contract and starting of the new contract and data looks skewed.
Due to this todays closure needs to be watched with caution which if closed below the channel would be negative with the lower target being around 53000 levels.
However if the closure today is positive above the 56600 mark could lead to further upward move to target of 58000 levels.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)