LET THE MARKET TELL WHO WE ARE

Here is the daily chart of ZINC MCX showing rounding bottom which is considered a bullish reversal pattern. Commodity has been trading in ranges of 100-104 for more than 40 days. Today metal has broken out its key resistance of 104. A bullish continuation candlestick pattern named rising three Method has also appeared recently which is a trend continuation pattern. As per current developments we can say areas of 101.50 has become strong support and stability above 104 on daily closing basis would bring 106.90 and 108 on cards. 14 periods RSI is also moving up along with bullish divergence. RSI producing 62.55 reading and reading above 50 is considered bullish signal. Recommendation: Buying zinc on between 104.10-103.80 with stop loss below 101.50 for targeting 106.90 and more upside might be appropriate in short term, currently trading at 104.25

Sign of potential double top has seen in Natural gas MCX hourly chart. As shown in chart above commodity has been fluctuating near its 23 days old resistance at 238.50 but couldn’t hold the gains above the same to confirm a bullish breakout. As we can see in chart provided above commodity has broken a steeper (green dashed) trend line and now getting support at another (black) trend line which is supporting the areas of 234. At the same time bearish divergence has seen on MACD daily chart which indicates weakening momentum in this commodity. Now trader’s eyes will remain on the areas of 234 and any failure of this level would bring a retest to 231-226-221 and more down side. Stability above 238 would keep bullish scenario intact and then commodity would lead a rally towards 242-247 and 270 zones over the midterm time frame. Recommendation: Selling natural gas near the areas of 236-238 for targeting 231-226-216-206 with stop loss above 239 on daily closing basis might be appropriate....

Here is the example of Inverse head and shoulder bottom which appears on Lead MCX daily continuation chart. As shown in chart above recently metal has broken out above its neckline resistance at 112. During yesterday’s decline leaded did an intraday low 112.10 but couldn’t break that level because of existence of neckline resistance which has now turned support. As per the depth of this pattern lead is now likely to hit 120 in coming days. Areas of 118.60 are the 50% Fibonacci retracement of previous bearish that may work as good resistance. Support is now seen near 112 and 2 or more closing below the same may hurt our bullish expectations and then failure of inverse head and shoulder pattern may occur. Recommendation: Buying lead between 113.60-112.50 with stop loss below 111.50 on daily closing basis for targeting 118-120 might be appropriate in short term currently trading at 113.90.

Gold on MCX headed a an intraday low of 25373 on Monday in morning session and then nicely recovered in evening session and closed above Fridays closing prices. 1 day spike near key support of 25300, qualifies as Eve and Adam double bottom formation. Stochastic has been moving in oversold territory and now trying to offload oversold reading with a bullish crossover under oversold line. Now bulls eyes will remain at 27450 and sustained rebound above the same would result in a rally towards 29000. Areas of 25300 are likely to act as good support but in case of failure of this support decline may extend towards 23800-23500 zones. Appearance of Eve and Adam double bottom near 25300 suggests a worth buying opportunity in this commodity and one can look for longs in range between 25900-25700 as per his risk taking ability. Accumulation can be done in mini lots, traders can start buying mini lots of gold from 26000 and can add 1 more lot on every decline of 100 rupees till 25400 zones for ta...

Potential Bearish Crab pattern has appeared on weekly chart of NIFTY which completes at 2.24% Fibonacci extension of Leg BC at 6762. If wave CD extends then this rally may remain continue to 3.618 Fibonacci extension of Leg BC which is around 7988. Overall picture is still bullish as per this harmonic analysis and areas of 6111.80 and 6360 are very stiff hurdles for NIFTY. In near term stability above 6111.80 would confirm an attempt to 6300-6350 zones. Sustained rebound above 6360 would confirm a primary rally towards first expected reversal level to 6762 or in case of extension of this rally then next bearish reversal point on broader picture would be 7988. Areas of 5477 has become very strong support on longer term picture which are supported by horizontal support and rising trend line any failure of these levels may hurt our longer term bullish outlook on NIFTY and then corrective rally may take it to 4500 zones.

Nice buying interest seen in base metals since morning. Zinc May contract is now trading at 101.70  with 55 paisa gain sine previous closing. As shown in chart above metal is approaching near key resistance zones of 101.80-102. Zinc prices are now moving in a rising parallel channel which has a strong resistance at its mid line of 101.80 while areas of 102 are resisted by 61.8% Fibonacci retracement and sustained rebound above this level would lead a rally towards areas of 104-105 zones. MACD is now getting support at zero line and forming a bullish cross above its signal line which hints bullish momentum in this commodity. Recommendation: buying zinc between 101.50-101.30 with stop loss below 100.50 for targeting 104-105 might be appropriate in short term.

Copper COMEX bounced off from crucial level $3.0500 which was supported by descending parallel channel line. Metal made a double bottom at the crucial level of 3.0500 and jumped nicely. Price breakout objective for bulls is now placed at $3.2755 and sustained rebound above that level may help this metal to recover from current down trend. Areas of 3.2755 are expected to act as strong resistance and if selling pressure appears near the same then we will see a near term consolidation in this metal between key support at 3.0500 and resistance at 3.2755. Overall trend is down but bears need to show more power by producing closing below $3.000 to confirm a fresh bearish attempt. There are 2 possible opportunities to trade this metal. 1. Selling copper near $3.2600-3.2700 with stop loss above 3.2800 (closing basis for targeting $3.1000 and more down side in short term. 2. Buying copper if manage to produce close above 3.2755. In that scenario buying copper around 3.2755-3.2650 with stop lo...