Well yellow metal has shown strong
counter attack on last Friday due to which bias has changed from bearish to
bullish. In the last week we have seen roller coaster move on the daily chart
where both bulls and bears were showing their strength and USD/INR played a
vital role. The current scenario indicates that bulls are heading north side
and 32320 is the only hurdle which we can see on the daily chart, a daily
closing above this level will give us clear confirmation of trend reversal and
will open the way towards the 33,000 level.
From technical prospective we can see
that a potential rounding bottom pattern is in process of formation and
presently pair is making base of the price pattern. Presently gold is trading
and sustaining between the crossed moving average lines. Friday’s candle was
bullish engulfing candlestick which is generating bullish signal itself. Well
the way bulls has reacted at these levels it seems like short term downside
momentum has been over now and for the long term traders it’s right time to buy
once again. By applying the fibonacci retracement line we can see that it has
retraced almost 61.8% level which is golden opportunity to buy once again. We will
keep our short to intermediate bias bullish on the gold as long as 31500 remain
This week precious metal traders will
continue to monitor movements in the U.S. dollar, one of the biggest factors
for gold, with the greenback in turn taking its cue from expectations around
the Federal Reserve’s monetary policy plans on Tuesday. The US retail sales and
CPI data is also scheduled in this week, giving
them additional opportunities to reassure market watchers that they will take a
patient approach towards monetary policy.
international chart, despite the broad-based USD strength on Friday, the XAU/USD
pair rose to a daily high near $1314 and started to move sideways ahead of the
PMI data from the United States. The
$1300 level is a psychological level and gold is trading near above that level.
Last week gold moved up to $1320 but could not sustain and slipped to $1300
level which was another opportunity to buy again. We will keep our bias bullish
on the gold as long as $1270 level remains intact. To have a real bullishness
in the yellow metal, bulls need to trade and sustains above the $1320 level
which will give further bullish momentum and bulls will get aggressive to
arrive near to $1350 level.
After the Fed’s dot
plot showed that the FOMC was expecting no rate hikes in 2019, the U.S. 10-year
T-bond yield recorded sharp losses and extended its slide on Friday to touch
its lowest level since last week of 2017 at 2.471% by losing nearly 2.5% on a
daily basis. The traditional safe-havens such as gold and the JPY gathered
strength with the risk-aversion staying as the main theme of the market. In
this week main eyes will be on US GDP ( Annualized Q4) on Thursday.
Well long term to
intermediate term trend is up so in an uptrend market buy on dips will be
profitable strategy and every dips should be convert as buying opportunity. A bullish crossover on the MACD indicator is about
to come which will be a recent development on the chart. RSI has come out from
oversold territory and now it’s providing us fresh buy signal. The 32320 level
is key resistance level followed by 32500 whereas 31600 is key support level
followed by 31500 level.
Trade idea:- Odds
are in favor of bulls and daily to weekly bias remains bullish on the yellow
metal so traders and investors are advised to go long at current market price
in the range of 32100-32000 for the target of 32500 and 33000 and with the
tight stop loss of 31500 level. Further add your long positions above 31500
the analysis of the daily and weekly chart of copper we can see that earlier
copper was heading north side and was making successively higher highs and
higher lows. The bulls were moving up by taking the support of an uptrend line.
But the rally was limited to 468.65 level which was key resistance level on the
daily chart as we can see it was previous swing’s high.
reaching at the high bulls lost the grip from the market due the strong dollar
and due to which we can seen reversal candlesticks, a shooting start
candlestick on daily chart and a rickshaw man doji on weekly chart which was
the clear indication of trend reversal price pattern. Even in the last week we
can see a clear cut breakout of an uptrend line which was lying on the daily
chart and was last hope for the bulls.
copper is trading below the breached uptrend line and trading and sustaining
below the minor EMA (9 & 14) lines but still holding above the 50 EMA and
200 SMA lines. The current scenario indicates one should go for short the
copper on every bounce. Daily to weekly bias remains bearish on the copper and
odds are in favor of bears for the time being.
439 level seems as stumble block for bears and a daily closing below this level
will suggest that further add your short position for the target of 430 at
least. The way bears are reacting it seems like bulls are getting weaker day by
day and bears are getting stronger, even bears are not ready to stop in early
stage , if other things remains constant.
On the international chart, it’s just a starting once
bears trade and settle below the mentioned breakout level 2.866 level then we
may see further selloff or blood bath in the market till 2.750 levels at least.
There are high chances that we may see further selloff and clear breakout of
the mentioned level. From technical prospective we can see
that a rounding top price pattern is in process of formation and the way bears
are responding it looks like they will complete the mentioned price pattern at
2.560 levels in near term.
On MCX Copper, we can see a
double top price pattern is in process of formation which is a recent development and we will get
clear confirmation once copper trades and settles below 439 level and it will
open the way towards the 400 level in an intermediate term. A bearish crossover
on the MACD is also favoring the bears. The RSI indicator is below 50
with no divergence is also generating bearish signal.
The 439 level is a key
support level followed by a 430 level as major support level for the time being,
on contrary 460 levels is a key resistance level followed by 468 levels as
major key resistance level.
Trade idea:- Traders and
investors are advised to go for short at 448-450 level for the target of 439
and 430 level and further add short position once it break and sustain below
439 level with the strict stop loss of 460 level.
The pair is
showing high volatility as we can see that it is making both side movements on
the daily chart. Presently it is trading and sustaining above the moving
average lines which is generating bullish signal for the time being and two
consecutive bullish marabuzo candlesticks are providing strength to the bulls.
at the daily technical chart we can see that bulls have taken the charge and
they are trying to take it towards north side. From a technical standpoint, a
rounding bottom pattern has been formed on the daily chart which is suggesting
us that bulls will arrive at 1.6350-1.6400 level at least.
closing above the 1.6100 level will open the way towards the 1.6200 and 1.6300
level. Odds are in favor of bulls and intraday bias remains bullish on the pair
as long as 1.5900 level remains intact.
The way bulls are reacting it seems like bulls have
snatched the bite from bear’s mouth and it’s a clear indication of trend
reversal i.e. pair has bottomed out. Traders need to pay close attention to the
overall risk appetite in the markets when trading the EUR/AUD pair. Risk
currencies have not been well supported by developments in international trade
policies, which could continue to weigh on NZD and AUD. Only if the EUR/AUD
pair manages to form a bullish reversal candlestick pattern with today’s close then
we can consider further long the pair.
Shifting attention to our short-term oscillators, we
see that the RSI turned upside after it hit its respective downside resistance
line, and then crossed above 50, while the MACD, already given a bullish
crossover from the over sold territory. The
1.5800 is immediate support level followed by 1.5700 level whereas 1.6200 level
is immediate resistance level followed by 1.6350.
By looking at the daily chart we can see that bulls has
entered into a triangle pattern where we can see a small consolidation phase,
which is suggesting us to sit aside and wait for the valid breakout. A short
term uptrend line is also lying on the daily technical chart which is providing
us bullish signal. Traders are advised to go for long above 0.7000 level which
is good sign for bulls.
From past couple of weeks pair is performing very well and
heading towards norths side as we can see that every candle is making
suceessively higher highs and higher lows on the daily technical chart. By
analyzing the price action on the daily chart anyone can guess about this pair
that pair is in uptrend and heading towards north side. The way bulls are
reacting it seems like they are approaching the 0.7250 level in near term.
In our previous report also we mentioned to buy this pair I
hope readers must have made profit from this 250 pips move. Earlier pair was
falling down with strong bearish pressure. and was trading and sustaining below
the moving average lines but now scenerio has been changed and candles are
turned up and sustaining above the major and minor EMA lines.
Pair has got bounced from the fibonacci retracement line i.e.
61.8% level which is a psychological level. Odds are in favor of bulls and
intraday bias remains bullish on the pair as long as 0.6750 level remains
intact.On contrary a daily closing below the 0.6750 level will change the outlook from bullish to bearish and
it will open the way towards the 0.6500.
The 0.7000 level can be considered
as strong key resistance level followed by 0.7100 level whereas 0.6750 level
can be considered as strong key support level followed by 0.6650 level. A bullish
crossover has been occurred on the MACD indicator which is a recent development on the chart and
it is also generting bullish signal and strengthening the bulls and RSI is also
supporting the bulls from positive territory.
By looking at the daily
chart we can see that currently pair has arrived at 1.3132 level which is a key
resistance level as we can see that two consecutive swing’s are lying over
there and a valid breakout of this level will open the way towards the 1.3500
level. There are high chances that we may see bullish breakout of this
resistance level as we can see that every candle is making successively higher
highs and higher lows.
The short term to
intermediate term trend is up so in an uptrend market always buy on dips which
will be profitable strategy. From technical prospective we can see that pair
has retraced exact 50% from 1.3842 to 1.2468 level so from here once again we
are expecting that bulls will follow the main trend which is 61.8%. presently pair is trading and
sustaining above the moving avearge line which is providing us bullish signal. Traders
and investors are advised to go for long 1.3200 with the strict stop loss of
Odds are in favor of bulls and intraday bias remains bullish
on the pair as long as 1.3000 level remains intact. A bullish crossover on MACD
indicator along with a bullish divergence on MACD is supporting the bulls and RSI
is also favoring the bulls from above 50 territory. The 1.2950 is immediate
support level followed by 1.2850 level whereas 1.3250 level is immediate resistance
level followed by 1.3350.