LET THE MARKET TELL WHO WE ARE

  Today silver has headed an intraday high of 39090 but couldn’t sustain above 39000. When silver down in last week of January 39000 was the first reaction high placed during the first week of February. Now we are focusing on 39000 if silver manages to hold above that level then price objective for bulls would be 39700-40000. Key resistance for intermediate down trend would be 40600 and any sustained move above this level would increase the probabilities for completion of a harmonic structure which is widely known as bearish bat and than a rally towards 44000-44800 can’t be ruled out. Stochastic is loaded with strong momentum and stability above 50 hints bullishness for this counter. Areas of 37333 will remain in focus as trend support and any failure of this support would weaken the momentum and trend will turn sideways. Currently trading at 38848.

International spot gold is currently trading at $1208.70. Recently Gold witnessed a bullish breakout above descending trend line resistance but failed to climb above $1223 which was the high placed on February 19, 2015. Gold is now getting support near psychological level of $1200 and areas of $1190 are very strong support zones on daily chart. An inverse head and shoulder pattern is also visible on 240 min chart that has support at $1190 and neck line resistance at $1223 zones. Any sustained move above $1223 would call for a fresh rally that would help this metal to retest areas of $1240-1245. Key resistance would remain near $1260 and any closing above those levels would call for more upside. 14 periods RSI is staying above 40 and favouring bulls. 3 periods RSI has also climbed above 14 periods RSI which is also supportive for gold bulls. On lighter note stability above $1195-1190 zones remains bullish for gold and recovery above $1223 would confirm a rally towards $1245 zones where...