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By Ravindra Rao
MCX Gold February futures witnessed decline towards the lower band of the consolidation range of Rs 48,600-49,700. Meanwhile, key support for Feb future exists around Rs 48,450, where 200 DEMA coincides with the 78.6% Fibonacci retracement of the recent up move. On the upside, immediate resistance exists around Rs 49,100 (5 day EMA) followed by 21 day EMA (49,450), which could be the key level for the day. On the momentum front, RSI is trading below 50 (39) suggesting sideways to weaker trend. Price is likely to continue in the broader trading range of Rs 48,450-49,450 with sideways bias. Only close below Rs 48,450 would extend the downside towards Rs 48,100.
Strategy:
Sell MCX Gold Feb at Rs 49,100 with a target of Rs 48,500 with a stop loss of Rs 49,450.
MCX Silver March futures followed the path of the gold and witnessed decline towards the lower band of the rising channel. Meanwhile, key support holds around Rs 64,700 (lower band of the channel) and key resistance exists around Rs 67,850 (top of doji candle). On the momentum front, RSI is moving around 50 (49) suggesting a sideways trend. However, it needs to sustain above 50 to regain the momentum and push prices higher. Price is expected to move inside the range of Rs 67,850-64,700 with sideways trend. Only a decisive move out of the range Rs 64,700-67,850 would decide the further direction.
Strategy:
Sell MCX Silver March at Rs 66,600 with a target of Rs 65,050 and a stop loss at Rs 67,850.
(Ravindra Rao is VP-Head Commodity Research at Kotak Securities)