Technical Analysis for Gold, Silver & Nifty

With volatile trading session Indian share hit record high for a third straight session as blue chip stock such as L&T bolstered by buying from foreign investors. Central bank policy review and general election would act as the next catalysts for market.

Gold and silver trading at lower level due to firmer dollar, strong equity market and signs of a recovery in the U.S economy are likely to limit gains, while support from physical buying was also lacking

Technical Analysis – Gold

After making a high of 30737 gold battered down and trading below 29500 levels. Trading below 29500 levels confirmed the bearishness of gold. 50 and 100 days SMA supports the expected bearishness that expected bearishness valid unless the price breaches 29920 then 30200 for bullish trend

• Support 1 28750
• Support 2 28710
• Resistance 29950
• Resistance 2 30090

Gold breached the golden retracement level of 61.8 % which is at 29502.22 and made a low of 29245. If it breaks the retracement level of 50% which at 29123.78 then the downside target would be 28800.

Technical Analysis – Silver

Silver hit heavily more than 4000 points and is currently trading below 61.8% retracement correction of bullish trend that started from bottom 43997 ended with the high of 48864. This bearish trend may extend to the level of 43500.

• Support 1 43850
• Support 2 43600
• Resistance 1 44600
• Resistance 2 44850

Stochastic and RSI are neutral to bullish signal that silver may break the major support level of 43600.

Technical Analysis – Nifty

S&P CNX Nifty has broken out from its weekly range between 6470 to 6570, closing above the 6570 would confirm long term strength. Nifty is trading at 6589.75, sustaining above the psychological level of 6600 would keep the upside movement intact.

• Support 1 6560
• Support 2 6420
• Resistance 1 6600
• Resistance 2 6680

Since nifty is trading above the key resistance level, the short term outlook is positive.