09:57
MCX Tips
MCX Gold regained some strength earlier today, as buyers rushed to grab bargains from multi-month low levels. Continuing political turmoil in Greece, concerns over Spain banking sector and news of US bank giant JP Morgan’s $2bn losses pulled down gold to negative territory in the last week. More information about Commodity trading visit my site stock-trade-tips.blogspot.com
Speculation over Greece’s possible exit from the Euro region pushed Euro to a four month low. As per the latest CFTC report, money mangers have reduced their bullish bets in gold futures and options by 20 percent to the lowest level since December 2008. However in the physical stock market demand picked up despite a strong dollar, as investors and speculators took the advantage of the drop in prices.
At the same time, the prevailing candlestick formation is supportive for a healthy selling, but an oversold RSI might minimize such opportunities in the very short term. RSI is dragged below the 20 mark, first time since December, signaling that prices have been undervalued. Hence probable recovery rallies towards 1606/1620 levels cannot be ruled out in the short run. For the day we favour a quiet trading session inside $1597-1565 regions with mild negative bias. Conversely, reversal of the present momentum is anticipated once it break's above 1632 with stiff volume.
Trading strategies
Key levels for the day: Downside immediate: 1565/1545 followed by 1502
Upside: Immediate 1596-1606/1620 then 1655/1672/1684 strong 1696-1702.
Sell below 1580 target 1565 SL above 1596. Sell on pullbacks to 1606 target 1590 SL 1621.
Sell below 1565 target 1545/1502 SL above 1582. Sell on pullbacks to 1630 target 1600 SL 1645.
Buy at 1565 target 1582 SL below 1545 (risky)
Buy above 1608 target 1620 SL 1600. Buy above 1620 target 1630/1645 SL below 1605
Buy above 1648 target 1660 SL below 1632
Broad selling pressure is in order as long as prices stay below 1596.
Speculation over Greece’s possible exit from the Euro region pushed Euro to a four month low. As per the latest CFTC report, money mangers have reduced their bullish bets in gold futures and options by 20 percent to the lowest level since December 2008. However in the physical stock market demand picked up despite a strong dollar, as investors and speculators took the advantage of the drop in prices.
At the same time, the prevailing candlestick formation is supportive for a healthy selling, but an oversold RSI might minimize such opportunities in the very short term. RSI is dragged below the 20 mark, first time since December, signaling that prices have been undervalued. Hence probable recovery rallies towards 1606/1620 levels cannot be ruled out in the short run. For the day we favour a quiet trading session inside $1597-1565 regions with mild negative bias. Conversely, reversal of the present momentum is anticipated once it break's above 1632 with stiff volume.
Trading strategies
Key levels for the day: Downside immediate: 1565/1545 followed by 1502
Upside: Immediate 1596-1606/1620 then 1655/1672/1684 strong 1696-1702.
Sell below 1580 target 1565 SL above 1596. Sell on pullbacks to 1606 target 1590 SL 1621.
Sell below 1565 target 1545/1502 SL above 1582. Sell on pullbacks to 1630 target 1600 SL 1645.
Buy at 1565 target 1582 SL below 1545 (risky)
Buy above 1608 target 1620 SL 1600. Buy above 1620 target 1630/1645 SL below 1605
Buy above 1648 target 1660 SL below 1632
Broad selling pressure is in order as long as prices stay below 1596.
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