LET THE MARKET TELL WHO WE ARE

Zinc is currently trading at 112.25 after hitting intraday low of 110.95. Counter had been moving in a nice down trend and formed a descending trend line breakout on October 9, 2015. Now this metal is fluctuating near its 30 days SMA that stands near 111.90 zones. Prices are getting support near 110.60 which is low placed during the month of August this year. A potential inverse head and shoulder reversal pattern can be seen clearly on daily chart. According to this pattern reversal will confirm above neckline breakout that stands near 123. Recovery from today’s low of 110.95 indicates buying interest in this metal. MACD is making higher top if compared with prices and suggests a hidden divergence. However, MACD has formed a bearish cross near center line but lack of follow through selling suggests a strong support near 111-110 zones. Price has stuck in a range and volume has shrunk that indicates low participation. Respect of 109 zones will result in a rally towards 122 and then 129 ...

NIFTY index has been witnessing a correction in a channelized manner after posting a life time high of 9119.20 during the month of March this year. Now index is moving in a corrective leg of this intermediate down trend. Recently nifty has headed a high of 8246.40 but failed to attract follow up buying after closing a full gap partially which was left during the month of August this year. On Monday, if this index manages to hold above 8250-8260 zones then it will try to head towards 8320-8360 to fill this gap completely. There is another small gap left between 8322 and 8360 zones and these areas are also resisted by 50% correction level of entire bearish move from high of 9119.20 to low of 7539.50. Presence of descending trend line near 8350-8360 zones will be a tough challenge for bulls. Price and time symmetry also hints a potential reversal from 8300-8350 zones. In other words, stability below 8260 will keep this index in a consolidation mode between 8100-8260. Recovery above 8260...

Gold is now trading at $1177.76 and testing its broken horizontal support that has flipped to become resistance now. Prices are staying within a potential rising channel and failing to attract further buying to confirm a breakout above the resistance line of this channel. Stochastic has reached in overbought territory and failing to make a new high if compared to August 2015 peak when gold headed a high of $1169.93. Divergence between price and indicator hints weakening of bullish momentum that may result in failure of current rally. Immediate resistance is now placed at $1192. Decisive closing above $1192 will neglect these expectations of a bearish reversal and then retest to $1204 and $1227 can’t be ruled out. If we get a confirmation above 1193 then next big hurdle will be around $1233. Support is now seen near $1174 and then at $1163. Key support remains at 1163 and stability above this support will keep this metal in a sideways mode between 1165 and 1190. Any sustained move belo...