LET THE MARKET TELL WHO WE ARE

We all are waiting for union budget 2015-16 desperately and assuming whether government is going to reduce or not, import duty on gold and silver. If tomorrow government of India decides to reduce import duty on bullions then it will be a positive trigger for international precious metals. However reduced duty may impact domestic bullions market negatively but it would be a good bullish trigger for international bullion markets as cheaper import cost will attract importers that would initiate demand for these metals in international markets. For international spot gold areas of $1222-1224 are providing a stiff resistance once if it is taken out then we will see attempts towards $1240-50 zones. Currently gold is trading near $1215.   Feel free to write me at sunirathi@hotmail.com for any query regarding any trade.

Gold on mcx witnessed nice decline on Friday and headed an intraday low of 26681 and took support near Fibonacci price cluster that stands 26660-720 zones. Areas of 26660 are also supported by a rising trend line and oversold reading on stochastic indicators keeps chances alive for a potential recovery from 26700 zones. Today gold has opened with an upside gap and maintaining itself above previous closing price which is also a positive factor for this commodity. In past we have seen nice recovery from 26700 during bearish attempts and long legged candlesticks near that level hints a strong demand zone around these areas. We are expecting uptrend to remain intact until gold holds below 26660 zones decisively and attempts towards 27100-27300 and more upside can’t be ruled out. Any closing above 27500 would help this commodity to resume its on-going uptrend. Recommendation: Taking longs in gold around 26850-750 with top loss below 26550 (closing basis) for targeting 27200-27450 and mor...