Buy MCX Silver July: Prices to extend its gains further till 40900 levels

Way2wealth | April 17, 2013, midnight

Technical View:


MCX SILVER JULY:For the third consecutive week, Silver prices traded on a positive note. After opening at 39177 the prices gradually trade higher and finally settled at 40091 gaining more than 2.50% on weekly basis.

- Price have exactly retreated 50% of the recent fall. Now the immediate resistances are at 40400 then 40900 which is 61.8% retracement level. Breakout above 40900 will extend the rally towards next key trend line resistance of 42000 whereas on downside supports are at 39600 then 39000.

- On the weekly chart, momentum indicator RSI has recovered from 0.40 to 0.46 and the MACD is on a negative note.

- For the week, we expect the prices to extend its gains further till 40900 levels and we recommend buying around 39900 levels.

Recommended Action:Buy.


MCX CRUDE OIL JUNE:After two weeks of massive pullback last week crude oil prices traded on corrective note and tumbled from the high of 3370 and ended at 3213 down by 1.77% on weekly baisi.

- Although the prices breached the falling trend line, but it failed to hold and closed below that followed with a bearish candlestick. For the week, immediate support is at 3100, break down below that can once again drag the prices in bearish towards 2943/2870 levels.

- The momentum indicator RSI has dipped slightly from 0.19 to 0.47 and while the MACD continued to stay bearish.

- For the week, we expect crude oil prices to remain lower and break down below 3100 will provide further pressure till 3000 then 2950.

Recommended Action:


MCX COPPER JUNE:In the last week, copper prices remained volatile and in the early day’s and hit a high of 374.45. Thereafter it turned lower and finally ended flat at 367.40.

- Prices almost tested the falling trend line resistance and turned lower from the same and forming an Inverted Doji candle. Ahead, the immediate key support is at 359, a convincing close below that will once again turn to bearish.

- The momentum indicator RSI and the MACD remained on sideways to bearish indicating downside bias.

- For the week, we expect prices to remain downward and however we recommend selling on below 365 for targets of 357 then 355 levels.

Recommended Action: Sell.


NCDEX JEERA JUNE:After two week’s of minor pull back, Jeera June prices once again turned lower in the last week and ended at 17880.

- In the early session of the week, prices penetrated the immediate support of 17700 mark, but by the end it managed to recover and settled above that. Going forward, break below 17700 will draw down the prices till trend line support of 17000 then16900 levels.

- For the week, 17700 will hold as a crucial support one for Jeera and break down below that will draw down the prices till 17250 then 17000 levels and thus we recommend selling on break of 17700 for given targets.

Recommended Action:


MCX GUAR GUM JUNE: Last week, Guar gum prices continued to quote sideways to bearish and tumbled till the low of 7460 and rebounded slightly and settled at 7673.

- Prices have precisely tested the previous top supports and rebounded from the same. Going forward previous high of 7490 remains as key support. Prices’ consolidating above that for the last few sessions is indicating long build up in the commodity. On higher side immediate trend line resistance is at 7750, surpass above that will confirm the break of descending triangle pattern.

- Momentum indicator RSI has dipped slightly lower from 0.59 to 0.48, while the MACD continues to remain on bearish note.

- For the week, we expect prices to hold above previous high of 7490 and ttrade higher. Thus, we recommend buying around 7650 for upside targets of 7940 then 8100 level. However, break down below 7400 will extend its bearish move till 7000.

Recommended Action: Buy.


NCDEX MENTHA OIL JUNE: Mentha oil June contract prices traded marginally higher in the last week. After opening at 911 it rose till the high of 935 and finally settled at 930.

- On the weekly technical chart, prices have exactly tested the triangle break out level of 900 and rebounded from the same. Prices’ quoting near the key levels and the rise in volume is also indicating fresh long positions. Now the immediate resistance is of falling trend line is at 949, break out of the will shift the overall trend to bullish.

- The momentum indicator RSI recovering from the oversold zone is signifying buying pressure at lower levels. However, the MACD still remained on a bearish note.

- For the week, we expect menthe oil prices to remain firm and recommend buying around 925 for targets of 949 then 970 levels.

Recommended Action: Buy.


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