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Ravindra Rao
MCX Gold futures went back and forth during the trading session on Monday as it continued to hover around the Rs 47,000 mark. Now the target/resistance exists around Rs 47,380 (200-DEMA). Similarly, 20-DEMA at Rs 46,600 holds a good support. The medium-term momentum has turned positive as MACD generated a crossover buy signal. The MACD histogram is in the positive territory within an upward sloping trajectory which supports the higher price trend. To conclude, price is expected to consolidate in the wide range of Rs 46,600-47,380 with a sideways to higher bias. Only a close above Rs 47,380 would bring renewed buying interest in the yellow metal and push it higher towards Rs 47,800. On the flip side, failure to hold above Rs 46,600 would weaken the trend and price might test the next support around Rs 46,450-46,200.
Trading Range: Rs 46,600-47,380
MCX Silver remained in a sideway range on Monday after last week’s sharp recovery rally. Although the regression channel on the daily chart suggests a weaker bias, currently the price is hovering in between the mid and higher band of the channel suggesting possible recovery .The formation of a bullish candlestick pattern near the support line along with positive divergence in RSI could support bulls. The immediate resistance is at Rs 63,200 (50-DEMA). A close above Rs 63,200 might lead to a resumption of its recovery rally towards Rs 64,200. Support is at Rs 60,000, (midline of the regression channel) below which the bears may target Rs 58,200 (recent bottom). From the above analysis, we expect the price to trade in the range of Rs 60,000-63,200 with a sideways to higher bias. A close above Rs 63,200 may intensify the bullish momentum towards Rs 64,200.
Trading Range: Rs 60,000-63,200
(Ravindra Rao is CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd. Views are his own)