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Bullion Intraday Road Map for Jan 31, 2012


Gold: currently trading at 1735.85, day trading range will remain between 1710-1742, trend is up but reversal is likely. Yesterday gold was struggling between ranges of 1711-1740 and was not above to form any directional moment. Having strong resistance at 1742 break above 1742 would signal an advance till 1755-1760 zones. Immediate supports seen at 1725 break would signal retest to 1716-1711 zones. Key support will remain at 1700 break would take it to 1680-1670 zones.

Recommendation: Selling gold around 1635-1638 would be a good trading decision with stop loss above 1742 on 4 hour close basis for targeting around 1717-1706-1684.

Silver: currently trading at 33.57, day trading range will remain between 32.70-34, trend will remain up but reversal is likely due to overbought conditions. Silver having strong resistance at 34, if manage to hold above this level for some time then rally will remain continue till our ultimate target 35.70. Immediate resistance seen at 33.72 breaks would take it to 33.90-34 zones. But 34 will remain key resistance for the day. Immediate support seen at 33.40 breaks would signal retest to 33 zones. Below 33 it is likely to taste 32.80-32.70 zones during the day.

Recommendation: selling silver around 33.60-33.80 zones would be a good trading decision with stop loss above 34 for expected targets around 33.05-32.85

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