GOLD--Technical View For The Week Starting From-23-6-14

                                                                   

                                                                      GOLD IN $ TERMS

Gold closed at $1316.60 on 20-6-14

Range for the week ended on 20-6-14 was:-$1322.50---1258.

SUPPORT:-1287 / 1272 / 1258.

RESISTANCE:-1322.50 / 1331.40 / 1355 / 1361.80 / 1377 / 1392.60

Gold after making a low of 1258 moved up sharply during the week and hit a high of 1322.50 before closing the week near  the  highest  point , this indicates that there is further room for up move in it.

TECHNICAL   OBSERVATION  :-

1.       It is almost above its all long term and short term moving averages   except for one which is at 1322, if it starts trading above this then good up move is expected. The range  of  important moving   averages are between 1322---1272.therefore it is expected to move in the range and break on either side of the range will decide up or down move.

2.        The  technical  parameters  are  showing  positive  divergence  and it can only  come into play if it  remains above 1322 and if it does then  it could cross 1331.40 / 1355 / 1361.80 level in time to come, chances of which are looking reasonably good  because it has also given a up -side breakout during the week on the bar chart after a long time.

3.       Technically   the   trend   looks   steady   with an upward bias as long as it holds the moving average range.

MY VIEW:-

I expect   the gold to hold the level of 1287 on the down side and to cross at least 1331.40 level on the up -side   and   come near   to 1355 point. Those who have long position now can hold on with a stop loss of 1305, one can add to long position if it starts trading above 1322.50 with a stop loss of 1314 for a target of 1331.40 and 1345.

REMARKS:-Short term trend is looking up therefore buy on dip strategy is advised for the time being, buy at the appropriate levels with an adequate stop loss. DO NOT TRADE WITHOUT STOP LOSS. Kindly note that make your cost your stop loss in favorable trade and then trail it as the price moves up/down to gain maximum profit and avoid losses.

 Contact me for strategic guidance to enter and exit the trade

Trading Calls For -23-6-14

CNX-Bank Index-Technical Overview For The Week Starting From-23-6-14

CNX-Bank Index closed at 14997.65 on 20-6-2014

Range for the week ended 20-6-14  was :-15461.55----14858.90

SUPPORT :-  14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60

RESISTANCE: - 15373.20 / 15461.55 / 15464.85 / 15568.05 / 15660.05 / 15725.80 / 15742.05

Index moved in the range of 600 points during the week under review and closed the week near the lowest point of the range which indicates weakness, furthermore the close was below the previous closing bottom of 15030 so the lower top and bottom chain on line chart still continues and this indicates that the deep down correction in the index could happen in the coming week.

TECHNICAL OBSERVATION:- Index is still making lower top and bottom on the line chart but on the bar chart it had made lower tops but has not breached the recent bottom of 14858.90 yet. The technical parameter is showing negative divergence on daily line chart which indicate that index could break the level of 14793, since it is also way below its short term DMA of 15273 for 23-6-14 therefore it is expected that it will break the bar chart recent bottom of 14858.90 and this break could trigger deep down correction, going down good support levels for index are at 14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60.from where the index could bounce back. The range of 14058-14308 is having a bottom at 14063.60 and cluster of moving averages therefore this is a huge support area for index but if it starts trading below this level then one has to think otherwise, chances of which are looking very slim at this point of time. To regain strength and upward momentum again it has to go above its short term DMA and stay there for a reasonable period of time.

MY VIEW:-
1. Deep correction looks imminent
2. Index is expected to break level of 14858.90 & 14793 in the coming week.
3. In best case scenario index could complete correction in the range of 14450-14600.
4. In worst case scenario index could complete correction in the range of  14200-14350.

REMARKS:-Long term up trend still intact but avoid long calls till the clarity on down correction completion is visible. 

NOTE:

1.        PRICE STATED HERE IS OF SPOT MARKET.

         2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.
          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL        PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Nifty-Technical Overview For The Week Starting From-23-6-14

 NIFTY CLOSED AT 7511.45.10 ON 20-6-14

Range for the week ended on 20-6-14 was:-7663 -7487.55.

SUPPORT:-7487.55 / 747 / 7409 / 7360 / 7340 / 7263 / 7229 / 7206.70 /
7193.55 / 7118.45.

RESISTANCE :- 7563.50 / 7663 / 7678.50 / 7700.05 / 7855 / 7988 / 8011 /  8052 / 8195 / 8310

Nifty’s move was volatile during the week under review and it hit a high of 7663 and low of 7487.55 before closing the week near the lowest range, furthermore the close was below the previous closing bottom of 7533.55 so the lower top and bottom chain on line chart continues and this indicates that the deep down correction in the nifty is in the offing in coming week.

TECHNICAL OBSERVATION:- Nifty is still making lower top and bottom on the line chart but on the bar chart it had made lower top but has not breached the bottom of 7487.55 yet. The technical parameter is showing negative divergence on daily line chart which indicate that nifty could break the level of 7402 & 7229, since it is also way below its short term DMA of 7592 for 23-6-14 therefore it is expected that it will break the bar chart recent bottom of 7487.55 and this break can trigger deep down correction, going down good support levels for nifty are at 7477 / 7402 / 7340 / 7263 / 7220-7118.from where the nifty could bounce back. The range of 7118-7220 is having a bottom and cluster of moving averages therefore this is a huge support area for nifty but if it starts trading below this level then one has to think otherwise, chances of which are looking very slim at this point of time. To regain strength and upward momentum it has to go above its short term DMA and stay there for a reasonable period of time.

MY VIEW:-
1. Deep down correction seems inevitable.
2. Nifty is expected to break 7487.55level in the coming week.
3. In best case scenario nifty could complete correction in the range of 7340-7402.
4. In worst case scenario nifty could complete correction in the range of 7180-7260.

REMARKS:-Long term up trend still intact but avoid long calls till the clarity on down correction completion is visible. The traders can try short calls a appropriate levels with adequate stop loss or on the safe side can buy PUTS of strike rate 7500 &7400.

NOTE:

1.        PRICE STATED HERE IS OF SPOT MARKET.

         2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.
          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION.

 Contact me for strategic guidance to enter and exit the trade

Trading Calls For-20-6-14

Nifty-Tehnical View(20-6-14)

Nifty closed at 7540.70 on 19-6-2014

SUPPORT:- 7533.55 / 7487.55 / 7477/ 7457 / 7409 / 7340 / 7263 / 7229/7200

RESISTANCE: 7563.50/  7631.70/ 7656.40/ 7678.50 / 7700

Nifty opened firmly and went above the short term DMA of 7595 but could not sustain today also and went down sharply and made a low of 7502.55 for the day before closing down at 7540.70 this movement suggests that weakness is still there .

 The only silver lining in today’s movement was that it went below the closing bottom of 7533.55 several times during the day but eventually closed above that, as long as it hold this bottom on closing basis one can expect bounce back from here. Since the closing is very near the bottom and it is still way below the short term DMA of 7598 for 20-6-14, therefore chances of holding this bottom looks weak .It will regain strength only if it consistently stays above short term DMA and close above the recent closing top of 7631.70.

      (Technical View remains the same as posted on 18-6-14 with change in some figures)

Technical View:-Nifty is making lower top and bottom on the line chart and technical parameters are showing negative divergence on the daily chart and if it comes into play then it can drag down the nifty to 7220 level in days to come, but I always say that divergence should be viewed in sync with moving average placements and not in isolation. Since nifty is below short term DMA therefore I am apprehensive that the negative divergence could play spoil sport. The divergence could only be negated if nifty goes above short term DMA which is placed at 7598 for 20-6-14 and stays and close reasonably above 7631.70, or if it could close above today’s close of 7540.70 on 20-6-14 and then crosses 7631.70 the next day and close above this, on the other hand if nifty breaks 7533.55 level and closes below this and finally goes below 7487.55 then the negative divergence will come into play.

REMARK:- Avoid long calls till the clarity on  down correction completion is visible, aggressive trader can try short call below 7533.55 with a stop loss of 7570 for a target of 7477

   NOTE:-
1.PRICE STATED HERE IS OF SPOT MARKET.
 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

   3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Trading Calls For-19-6-14

CNX-Bank Index-Technical Overview(19-6-14)

CNX-Bank Index closed at 15220.40 on 18-6-2014

SUPPORT:- 15083.90 / 15030 / 14858.90 / 14793/ 14709.30

RESISTANCE: 15350 / 15373.20 / 15464.85 / 15567.40

Index opened on flattish to positive note and made a high of 15461.55 for the day but did not sustained above the short term DMA of 15357.94 and went down sharply and hit a low for the day at 15128.45 before closing down at 15220.40.this move signifies that correction is still on.

Technical View:-Index is making lower top and bottom on the line chart and technical parameters are showing negative divergence on the daily chart and if it comes into play then it can drag down the index to 14790 level in days to come, but I always say that divergence should be viewed in sync with moving average placements and not in isolation. Since nifty is below short term DMA therefore I am apprehensive that the negative divergence could play spoil sport .

The divergence could only be negated if index goes above short term DMA which is placed at 15350 for 19-6-14 and stays and close reasonably above 15373.20, or if it could close above today’s close of  15220.40 on 19-6-14 and then crosses 15373.20 &15464.85 the next day and close above this, on the other hand if index breaks 15030 level and closes below this and finally goes below 14858.90 then the negative divergence will come into play

REMARK:- Avoid long calls till the clarity on  down correction completion is visible.however if any one want to take a long call the stop loss would be 15070.

  NOTE:-

1.PRICE STATED HERE IS OF SPOT MARKET.
 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

   3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade