Gold MCX Technicals
The Gold price outlook is still maintained to its positive, and the current corrective trend is of buying it is opportunity to accumulate. The Gold prices are seen trading between 2-upward slopping lines, ever since it formed bottom in the second half of 2008. On the indicators: 14-week RSI is trading in positive zone above 50 and is currently facing support. The Gold MCX momentum indicator MACD is trading in positive but has been breached by it deviation line from above. On the moving averages, prices are very close to the 100-day simple moving average (SMA), which will act as a strong support. Strategy for Gold should be to buy Gold MCX in small quantities for Targets 22,304 and 23,000, Support holds at 21750 & 21,550. We advise to buy on corrections & accumulate. 100-day SMA: 22775 and 200-day SMA: 21090
Silver MCX Technicals
Silver MCX price trend heavy correction is seen in the first half of May with a partial recovery in the second half, but since then also silver prices are on a constant decline on week to week basis. On the indicators: 14-week RSI has breached its short-term support line from above and is trading in negative zone below 50, while momentum indicator MACD's deviation line has breached its MACD line but is trading above zero; both showing signs of consolidation. Also prices are trading below their 10-week & 20-week simple moving average (SMA), while the short-term SMA has recently breached the long-term SMA. Also on daily charts, Strong support holds at 200-day SMAat 50490 levels. In the near-term, we expect silver prices to consolidate in a range with Support at 49,749 and Resistance at 49,751.
The Gold price outlook is still maintained to its positive, and the current corrective trend is of buying it is opportunity to accumulate. The Gold prices are seen trading between 2-upward slopping lines, ever since it formed bottom in the second half of 2008. On the indicators: 14-week RSI is trading in positive zone above 50 and is currently facing support. The Gold MCX momentum indicator MACD is trading in positive but has been breached by it deviation line from above. On the moving averages, prices are very close to the 100-day simple moving average (SMA), which will act as a strong support. Strategy for Gold should be to buy Gold MCX in small quantities for Targets 22,304 and 23,000, Support holds at 21750 & 21,550. We advise to buy on corrections & accumulate. 100-day SMA: 22775 and 200-day SMA: 21090
Silver MCX Technicals
Silver MCX price trend heavy correction is seen in the first half of May with a partial recovery in the second half, but since then also silver prices are on a constant decline on week to week basis. On the indicators: 14-week RSI has breached its short-term support line from above and is trading in negative zone below 50, while momentum indicator MACD's deviation line has breached its MACD line but is trading above zero; both showing signs of consolidation. Also prices are trading below their 10-week & 20-week simple moving average (SMA), while the short-term SMA has recently breached the long-term SMA. Also on daily charts, Strong support holds at 200-day SMAat 50490 levels. In the near-term, we expect silver prices to consolidate in a range with Support at 49,749 and Resistance at 49,751.
