Gold Short term 1125--1132 Strong Resistance to Cross

Gold Strong Resistance near 1125--1132 Zone in Near Term,

Looking at the Daily Charts of Gold in Medium term It has been moving in a Sideways downward biased Channel , the top end of the Channel is now near the 1123--1125 Zone Which will be A Strong Resistance to Cross ( Marked with PINK Lines on the Chart)

and in the Short term it has been Moving in a triangle (marked with orange Lines) So break above 1126 Zone Would Face Resistance at 1132 Where the upward Rising trend line of triangle is based. Which indicates that Fresh longs Should be taken if the Daily Close Manages to Close above 1132 levels for upside target of 1163--1174 targets , On Downside break of 1102 Will again indicate that the trend is Reversing again to Retest the Downward end of channel with Breakdown from the triangle opening Downside target till 1088--1065 $ -1044$ - 1005 $ , which Would possibly Mean the end of Short Term Zigzag Correction

The Leading indicators on Daily & 4 hours Charts have shown a Cross Over on the Downside from overbought Zones, Indicating some Shorts Are Being Created near Current levels




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silver

Silver has been moving in a Expanding triangle and wave count shows a Possible Start of third Wave with EURO also Supporting as far 15.65 Holds on closing Basis one can Expect an upside target of 17.55 lvls

Euro Short term view

Euro Does Double Bottom on Daily Charts , with the Second candle as Hammer and Some Follow up buying Coming up , The Following day - This Indicates that a Short Term bottom is in place and Some Retracement till 1.4000 lvls Cant be Rulled out , Look to Buy on Dips till 1.3400 is Held

An upmove in Euro Could Lead to Rise in PM metals Also Opeing an upside trgt of Gold till 1160 & slvr 16.8--17.35 Zone

Silver Comex

Possible Wave Count on Silver

As Far 15.65 is Held on Downside One can play longs For Trgt of 16.05--16.2

Mentha Oil short term view

Mentha Oil Hourly chart view : Menthaoil has Formed triple Bottom Near the Support Zone of 575 , The Hourly charts are in Oversold Zone and Last Candle of trading Session today closed in Hammer , Which indicates pause in the Downtrend and a Reversal possible , All Longs SL would be Below 570 Closing Basis

A Close Below 570 Could open possible Downside targets till 540 Again On the upside 592--597-601-610 are the Resistance For the December Future , a Close above 597 would mean That Mentha oil has Bottomed out For Short Term and Could Open upside Possible targets of 610--624-- 630 in the short term

The Current trend is in the consolidation phase between 575 & 597 .. Breach on any side closing basis with good volumes for a Day or two would Suggest the further trend

Gold Short term view

( Click On the image For larger view)

Gold after Making new Life time High at 1226.25 $ , Saw Some Sharp correction & profit Booking in past three Weeks Correcting more than 11 % due to strengthing Dollar, manged to Closed today below the psychological level of 1100 $ making a Intraday low of 1095 $

Technical view: Gold has Multiple supports in the Range of 1085 $ --1070 $ . The Current fall should halt anywhere between these levels before it Resumes a pull back or Starts consolidating in Range of 1065 $--1123 $ . The First support is at 1083 $ which is Cuming from the trend line Support From the August 2009 Lows of 925 $ and Rising to above Levels . The Second Important Support Comes at 1078 $ which is 50 % Retracement Level of the Complete up move Which started from 922.5 $ in August 2009 to current high of 1226.25 $ December 2009 & below that is support coming From previous Resistance line - trend line Connecting the March 2008 high to Jan 2009 high Placed at 1070 $ . Sustained Trading below the 55 EMA at 1102 levels would mean that gold Is heading to test the above Mentioned Support levels


The daily charts Slow Stoch is completely in oversold zone and near the cross over suggesting a Small pull back is or consolidation near current levels cant be ruled out . The 14DRSI is at 39 approaching the Oversold zone .


A Close below 1070 $ level would Mean that gold in setting stage for a Longer term bearish market Opening further Possible downside till 1033 $ --1018 $-084 $

Comex Silver Short term view

What Next On Silver ???

Case a) marked With Pink Round Arrows Showing possibility of making of head & shoulder pattern case b ) Marked with orange arrow --- big Move & flag bullish flag consolidation

Case a) Silver If breaks 17.1 than a strong case of it forming Head & shoulder pattern over short term arises ..with neckline at 16.35 & breach below Same Would open an downside target of 14.1
Case b ) Shows that silver is consolidations Mood up after the large up move From 16$ to 17.75 $ and would breakout Soon ..any close abv 17.8 Would open upside Possible targets of 18.4--19.6

Summary : So the Most important lvls For Silver in short term are 16.35---17.1---17.8--18.4
While 17.1 indicating breakdown of Flag and test of Neckline at 16.35 possible & close abv 17.8 would mean that the short term Bullish Trend is still continued

Crude Short Term view

Crude oil has been Consildating in sideways channel For past two weeks after the big move from 65 $ to Recent high of 82 $ --- Looking closely at the Consolidation Looks like a bullish Flag and could consilidate for some More Days before breaking on upside opening potential targets of 87$--92$ in the Cuming Weeks

traders Can Look to Buy on every Dip and maintain a SL below 74 $ closing Basis or enter in Fresh Trades When Crude Breaks out of the Channel above 81.25 $

Resistance on upside 84$--87.5$--92$

Supports on Downside 76.7$--75.4$-74 $

Natural Gas Short Term view

Natural Gas Comex : Natural gas made new monthly low of 4.470 at start of the week to Exactly take support near the 55 EMA (marked by aqua line) on daily charts & bounced back to close near 4.665 lvls

Closely Looking at the EOD charts , yesterday Closing was a hammer Which Signals possibility of trend Reversal or Atleast some Sideways consilidation With Retracemnt . The Close is also Exactly the Near the Resistance of Falling trend Line which is Cuming From Recent top of 5.940

Traders Can take Small risk to go Long here with a SL below 4.351 Which is medium term strong Support and Look for a Possible Bounce on upside to Fib Retracemnet lvls of Complete Move From 5.940 to Low of 4.470 Trend Reversal level == 4.820 (23.6 %) --

5.105(38.2%) -- 5.265 (50 % retracement)

Looking at Indicators RSI is around 30 lvls & Fast Stoch is below avg 20 lvls Clearly indicating that its in oversold Zone and a Bounce cannot be Rulled out

Happy Diwali

May the divine light of diwali
spread into your Life
peace, prosperity, happiness
and good health.

hiii Everyone ,

First of all warm & personal wishes of Diwali to you & family , may u have the best of time going forward

Its been a month almost i Didnt post any updates on the blog , aplogies For Same . The Month back Was full of excitment and rough time for me .

On the good news Front as clearly advised to my paid Clients gold gave a Major breakout above 1012 as advised to them .

Sucessfully Conducted a Seminar For more than 150 MCX traders in Mumbai -- Gold the Next Blockbuster ---

The Seminar coverd Myths of commodity trading, use of technicals at its best , trading Strategies & genral physcology of trading -- all these would help a trade in best way to pick the right Commodity to trade and swer his Simple Question What to trade ?? & when to trade & what target to trade it for ??

The Seminar ended with a Short term view on GOLD, silver, Crude thats what all actually wanted " Market Kya lagta Hai"

Had a bit of down time too in between as my health Conditions were again bad and Couldnt spend Much time on posting things on website Though services to paid Clients were on time & excellent Calls were Deliverd Week on week basis ,

Mid last week just gave a Discount offer of 10 % on subscription Fees to yahoo Clients for new & old clients -- subscirbe for 3 Months at a go & get 10 % discount and the response on same was amazing . Those who missed it as i couldnt update on my blog ... Buzz me again before the 20thoct and avail same

Would be back to Posting the latest view post diwali -- and keep updateing you all

Finally Once again -- have a great Weekend ahead n joy Diwali with Maximum Friends & family

Chirag Kabani

http://www.askchirag.com/