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Bullion Intraday Road Map for Dec 09, 2011

Gold: currently trading at 1713.60, day trading range will remain between 1660-1740. Till gold trading above 1698 trend will remain sideways and jump from support line can’t be ruled out, more sellers may enter below 1698. Immediate resistance seen at 1724 above that area gold will try to move towards 1735-42 for the day. 1745 will remain key resistance for the day. Immediate support seen at 1698 below 1698 selling pressure will take it to 1680-1668 zones for the day. 1665 will remain key support for the day. Daily close below 1698 will open the doors for a down side swing till 1635-1600 zones in short term. As per current scenario 1717 is also a very strong resistance till gold trading below this resistance area it is likely to move in range of 1700-1717.
Recommendation: selling around 1713 with stop loss above 1717 for small targeting around 1706-1700 below 1698 trader can enter in fresh shorts with stop loss above 1717 for expected targets 1685-1668. If gold manage to penetrate above our 1st said resistance of 1717 then trader can use this rising opportunity for selling around 1730-1734 with stop loss above 1755 on 240 minute closing basis for targeting around 1716-1708 further down side will take place only below 1698.

Silver: Currently trading at 31.70, day trading range will remain between 30.50-33.10. Silver is moving in a rectangle between 30.50-33 after a sharp down move from 35.66 to 30.65 breaks below 30.50 on 240 minute closing basis would confirm a bearish breakout and it will try to move towards 29.60-28.40-26.60 our expected targets. Immediate resistance seen at 31.90 above this it will try to move towards 32.25-32.30 area above 32.30 if manage to hold then retest to resistance area around 32.70-32.90 can’t be ruled out. Trend will remain down because retest of 31-30.50 due as per this rectangle. Minor support seen at 31.35 below this 31-30.50 will be next levels to watch. 30.60-30.50 will remain key support zones for silver and a sharp fall can’t be ruled out after confirmation of breakout.

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