As evident from the chart, the commodity has been finding support near its 50% Fibonacci retracement level that is around Rs2,437. For the last couple of trading sessions it has been finding support near this area. Going forward,the immediate resistance is placed at Rs2,490, which is the falling trend line resistance. Once that is taken off bulls will take charge of this commodity and head higher towards Rs2,470 and Rs2,606. The reversal of this view is placed at Rs2,399, which is 61.8% retracement level.

As evident from the chart, the commodity has found resistance at the upper end of the daily Bollinger Band and is currently trading below its 20-daily moving average (Rs1,253). The daily momentum indicator is in sell mode indicating a halt in the uptrend that started from the lows of Rs1,100. Hence in the short term it is likely to correct lower towards Rs1,200, which will be the 50% retracement of the rise from Rs1,100-1,300. The reversal of the view is placed at Rs1,277 where the upper daily Bollinger Band is placed.

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