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Bullion Intraday Road Map for Jan 30, 2012


Gold: currently trading at 1734.54, weekly trading range will remain between 1640-1805, weekly trends up; intraday trading range will remain between 1700-1760, trend up.  Immediate support seen at 1717 break would take it to 1711-1704 key support will remain at 1700 and break would signal fall till 1670 zones. Intraday key resistance at 1760 minor resistance are 1740-1752. Stochastic indicator with overbought readings suggesting that break above 1740 is less likely in case of break maximum rally expected till 1755-1760. Trader can use this opportunity for selling on rise.

Recommendation:  technical indicators are in overbought zones suggesting that very short term correction may take place any time so it’s better to wait for 1670 zones to enter in longs otherwise stay aside. Selling on rise around 1750-1755 zones would be a good idea with stop loss above 1760 on daily close basis.

Silver: silver currently trading at 33.57, weekly trading range will remain between 31-35.80, trend will remain up. Day trading range will remain between 32.70-34 trend will remain up, but selling pressure expected. Stochastic indicator reached in overbought zoned with bearish crossover suggesting selling pressure is likely. Immediate support seen at 33.20 breaks would signal intraday fall till 32.70, 32.70 will remain key support for the day break below 32.70 will open the day for 32.30-31.70-31.40 but key support for the week will remain at 31 breakouts would signal weakness in trend.

Recommendation: short term technical indicators reached in overbought zones suggesting break above 34 is less likely over all rally is open till 35.70 traders can use this rising opportunity with selling or profit booking in previous longs for targeting around 32.70-32.30. 

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