Market Trends - A Success Formula for MCX Market

Gold price inch higher; Buy in range of 37,550-37,530

Gold price inch higher; Buy in range of 37,550-37,530

Experts feel the trend in gold is still intact and investors should use dips to buy for a near-term upside target of Rs 38,700-37,800/10 gm.

Fine Gold Bars

 

India Gold December futures rose on November 28 as investors bought the safe-haven metal amid new doubts over the United States and China trade deal.

US President Donald Trump on Wednesday signed into law legislation backing pro-democracy protesters in Hong Kong. China’s Foreign Ministry promptly warned of unspecified “firm countermeasures” in response, said a Reuters report. Gold December futures were trading with a positive bias or up 0.11 percent at Rs 37,565 per 10 gram at 0920 hours IST.

Experts feel the trend in Gold is still intact and investors should use dips to buy for a near-term upside target of Rs 38,700-37,800/10 gm.

Trading Strategy:

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold December contract moved lower in the last session and retested the prior day’s lows near 37,500 levels. This has formed a bearish candlestick pattern but as prices are near to the support zone, one should be alert.

International Gold has tested the support of $1450 and looks to be forming a bottoming pattern. Now a move above $1460-1465 level will suggest that the trend has reversed on the upside.

MCX Gold December can strengthen above 37,660 levels and a break of 37,800 will indicate upside reversal.

Intraday strategy: MCX Gold December buy in the range of 37,550-37,530 with 37,450 as stop loss and a target of 37,700 levels.

Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities

On the daily chart, Gold traded weak on positive trade optimism on Wednesday. But, it gained some lost ground on the back of weak US data. The ATR which is significantly low at 350 from 500 in Sep19, keeps indicating signs of less of trending & more of a news based reaction market.

Prices have broken below the 20-Days EMA placed at 37,941, and 50-Days EMA laced at 37,883 prices, and is now trading near strong support at 100-Days EMA placed at 37,535 which needs to be respected if prices take support here some bounce-back can be expected towards 37,800.

It is best to buy when the market is showing intra lows, and sell when the market is showing intra highs as the basing range-bound market can continue till the time there are no new confirmed triggers.

Silver prices closed weak, it keeps trading below 20, and 50-Days EMA placed at 45,000. On the upside, 44900-45700 is the major supply zone, and on the downside 43550-43100 is likely to act as demand zone.

The ATR in Silver has also dropped significantly below 700 from 1200 which was a month ago. Prices keep taking resistance near 45,000.

Technical indicator MACD is suggesting flat to a weak trend which means sell on rallies trend can be seen. A close above 45200 looks unlikely, and if it does that it shall give reversal signals for strong upward momentum.

Expert: Hareesh V, Head Commodity Research at Geojit Financial Services

The immediate support for Gold of Rs 37,480 needs to be cleared for the continuation of weak momentum for the day. Else, expect recovery upticks but unlikely to break the resistance of Rs 37800. An unexpected rise above Rs 37800 would take prices higher towards Rs 38,300 or even later.

Expert: Manoj Kumar Jain, Director at IndiaNivesh Commodities

On account of Thanksgiving day, US markets are closed today. We expect both the precious metals could hold the key support and show some recovery in the prices in today’s session. Gold could test 37700-37750 and silver prices could rebound towards 44400-44500 levels

Source: Moneycontrol

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