Category Archives: Gold

Its Time-out for Gold

Gold had given a good run up since last one year, when interest in the Equities had faded off. But now things could change and money could flow back into Equities after government wining trust back through a budget which was surely repairing our Fiscal targets. Two more fundamental reasons for Domestic Gold to witness sell-off are, appreciating rupee  and sell-off in International gold. Equity markets around the world have seen a quick rally from almost 200 Weekly SMA and so alternative investment asset gold has to see a profit booking.

Technically as chart suggest, a wedge pattern breakout has been confirmed today at 29200 which is trigger level for Shorting gold.  Indicators on the daily chart are also in overbought zone supporting the wedge breakout. Though Confirmation depends on todays closing but i would take a risk early considering cross market analysis.

Recommended Strategy: Sell Gold (CMP:29130) Tgt: 28000 SL: 29800  

Gold to glitter which could be a bit bitter

Gold had been the most under performing invest asset since last 4 years since it pinched to new high but in recent past it has outperformed all the equity markets with some quick short term gains. Today i finally managed to get some time to analyse asset from the longer term perspective and just caught hold of a channel on Monthly chart of USD Gold and we could notice that its perfectly trading in that channel since late 2013.  Though the channel is downward sloping which means overall outlook is bearish and this is just a short covering, but look at the indicators. Indicators are highly oversold that too on monthly chart, and are their moving averages are emerging over the indicator. This gives me a bit bitter moment being a equity guy. It is usually believed that Equity and Gold are inversely related because in rest of the world, except india, its just considered as an alternative investment idea!  So if the gold demand is increasing, it simple states that equity money is following to Gold worldwide. But still a long term reversal confirmation is AWAITED. As you all could notice in the chart, gold is approaching resistance on the channel which is at $1258 (100 Months moving average) while another strong resistance is just above it which is at $1300 (Fibonacci resistance and channel resistance). So for confirmed breakout on Gold and a confirmed sell-off in equity, range of $1258-1300 is crucial breakout. Only time has the say now…so lets wait and watch.

#6 Gold Update: "Old is Gold"

Trading gold or to say investing gold had been the oldest idea and its back for short term. Equity has been showing sign of weakness in near term which was the first sign that made me look at gold chart. And surprisingly it is supporting the inverse rule with Nifty or to say equity in that manner. Attached graph is weekly chart of Gold and we could notice that 50 Weekly Average has crossed 100 to trigger a short call but indicators are suggesting a small pull back on gold which could be upto 29470-30400. This pull back will be pure technical and we expect it to be a fast one. Short term traders can sure trade long but for safe traders we recommend to go short on the resistance levels as menitoned above. As i have circled area on the chart it is to show you how gold is reversing around at 28280 in this marked period. Since last three weeks it has taken support there and bounced back. Daily chart has also shown some sign of pull back. But on other side 30460 is strong resistance on Monthly chart which would be breached.

Our Strategy: We recommend to go long with sl of 28300 tgts 29470/30400

Note:* We might have recommended this strategy to our client and we dont have any personal position

#5 Gold Update: Target 25000 achived on Gold!!! Still more downside upto 22500

On 29th January and Again on 3rd April i did posted that we are surely showing some more downside on gold and we achieved my 2cd tgt 25000 on GOld..My third tgt was around 21500 which is active now. I feel gold could further go down to 19300/16300 but 22500 is strong support and we could see a break to sliding of precious metal. So our strategy on Gold could be shorting gold on each rise with sl of 27200 with target of 22500. 

#4 Gold Update: Gold is completly drunk…

Before two days I posted for a party as my 28400 on gold has been achieved…and I guess gold is still havin hangover of tht party and still slipping.  My 2cd tgt 27100 has been achieved and currently trading below 26000. Cyprus has sold gold with a big chunk which is the major reason but technical had already given sell call at 30000. Now italy and Slovenia could do the same coming weaks which could help to achieve my nxt 2 tgts 25000 n 21000..so its still party hanging for my followers.  cheers!!!!

#3 Gold Update: Gold traders ..Thumps up to my followers! !

As I have been intimating short on gold since jan ,my 1st tgt 28400 has been achieved today. People around the world are shifting from hard assets to paper assets as their stock markets have been at life time high and economy picture in US has improved.  In India we stilm have governance problem so both the bullion n paper markets is  seeing a set back. But technical suggest a support for nifty at 5400 after infy gave a set back to traders. I did mention in my post that 5400 was strong support for nifty while gold was going to slide down..now technically nxt tgt ia 27100 and than 25000/21000

#2 Gold Update: Players go for Gold, Not Traders!!!

Again i have connected my title with a Bollywood name and tagline but this time the name of film even mean it. Only Real users or players but gold at this time or else its time to short Gold. On 30th January i initiated a Short call. It was confirmed that gold is not a gud for investment currently. Now today i have spotted some real danger on the chart. As you call can see in the chart that a trend was tested 5 times in last 7 years but today it has broken that and trading below that. It is a montly chart so we need to wait till end of april but i suggest you all to go short with extended tgts to previous 28400 to 27100/25000 and worst case 21000.. Yes 25000 and 21000 are mch possible. So be cautious.

#1 Gold Update: Short YELLOW metal with tgt of 28400-28600

Before few months i did tweeted with graph tht i may sound foolish but i am expecting levels of below 30000 to 25000 on gold and see ystdy we got a confirmation for tht levels on the chart. In simple technical language we have seen a double top confirmation on GOLD and now we may see minimum of 28400-28600 in next month or 2. Tracking fundamentally we have 2 main reasons to support chart. Firstly, import duty has been hiked which will slow down unnecessary import of the yellow metal and traders who would have booked future imports would sell on. Secondly, equity and agri commodity markets are giving well-off returns compared to precious metal so it wld see speculators leaving bullion market for time being. In all it would be a good buying opportunity who are yet bachelor lol hahahah!!! so traders go short with sl of 30500 while long term investors buy on each dip till 28400-28600