This is where all technicals fail when something rises or falls without any reason. Till yesterday there was no strength at all in any of these base metals data and even today after such an unexpected rise the strength in terms of volume along with open interest is still not there in any of these except Lead. Honestly I have no clue why base metals have risen yesterday. I myself dont see any reason to this. Copper had breached its long term TL so beautifully that any technical analyst would be surprised to see it bouncing right from that point.
Crude as expected has taken stiff resistance between 3366-3392 region and fell down 50+ points after that. It is weak as long as its trading below this range.
The same incident has happened in Gold. Gold has shown a beautiful Head & Shoulders pattern on daily charts in US $ which went active on the breach of $943 for targets of $896. It has fallen till $911 but has shown a sudden spurt yesterday and went up till $941.25 and still managed to close and still trading below $943. The speed with which Gold has spurted up, it came down with almost same speed. One can keep an eye on the close above $945 as SL in Gold shorts. Above a close $945 we can expect a target of $956/$966. Silver didnt manage to match the speed of rise in Gold and still looks weak. It will be strong only on a close above 22900.
Natural Gas also behaved well on expectation. The moment it breached 193.6 it fell down till 189.6 and again kissed 193.6 and fell down till 189.1. My support was 188. Now it has entered weak zone and 188/185.3 is next on cards.
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HELLO SIr can u draw and show the head and shoulders pattern formed in daily gold chart
ReplyDeleteHello,
ReplyDeleteI have posted the chart. Pls view.
Thx
Abhi