Gold Buy trend Technical report

Gold in short-term we can expect rise in the futures contract traded on the Multi Commodity Exchange (MCX) seems to be on the fresh upside move. The contract is showing breakout as the prices are trading above 27050 Rs/10 gm just crossing the 50% resistance level, where as the support is seen at 26860 Rs/10 gm which is 38.2% retracement of point B to Point C.

After testing the lower level of 26350 at point C prices has reverted from the lower level and in the past few trading session is trading in the range where on higher side it is failing to cross 27080 level and on lower side support is seen at 26800 Rs/10 gm. Once the resistance level of 27080 is crossed prices will rise to test 273750 Rs/10 gm immediately.  A fresh rally to test the next resistance at  27375  looks likely in the coming days. A strong break above this hurdle can take the contract further higher to the next target of 27680 Rs/10 gm.

Short-term traders can trade with support of 26860 and can look forward for the target of 27375 and 27700 levels.

Rupee one pager report Breakout @ 64.25 CMP 63.90

Report Prepared on 15th June 2015 

Rupee Buy above 64.25        Stop @ 63.5     Target @ 65.40 – 66.45 – 67.20

Ascending Triangle (Continuation)

The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern. There are instances when ascending triangles form as reversal patterns at the end of a downtrend, but they are typically continuation patterns. Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation.

USD/INR formed an ascending triangle over a 6-month period before nearing the breakout resistance with an expansion of volume.

§  From a low of 63.10 in March, the prices established an uptrend by forming a higher low at 63.44 – 63.56 – 63.75 and advancing to a new reaction high in early April. The beginning of the trend started from January low of 61.30 and April Low of 62.05. After recording its highest price Rupee met resistance at 64.25. The duration of the pattern is around 2 months, which may seem quite sufficient. However, all the key ingredients for a robust pattern were in place.

§  The rupee is in advanced to cross 64.25 and once its crossed, immediate move can bring prices to 64.50 – 64.60 level before retesting the original resistance breakout, and this indicated underlying weakness in the currency.

§  The initial weakness was projected to be (64.25-63.1 = 1.15) points from the breakout at 64.25, making an initial target of 65.40. This target is expected to reach within few week. Prices has rose from 61.30 and 62.05 support level before entering in to pattern formation. Height of the poll is expected to be (61.30-64.25 = 2.95) and the higher side target comes to 67.20 in near term. Targets are only meant to be used as guidelines, and other aspects of technical analysis should also be employed for deciding when to sell.

MNM symmetrical triangle patten formation

HUL and LNT chart.. reversal point.