STOCK MARKET ---- NEEDS CAUTION

On charts there are indications that stock market may be entering down trend. So as of now caution is needed. Whenever it gets confirmed we may post here so please keep visiting.

DISCLAIMER: This Blog is meant for sharing our trading and investment ideas only and no calls to be taken as trading / investment recommendation. Visitors please do your own research or consult your advisers for safe trading, investing.

SHARP SELL OFF IN GOLD --- IS IT TIME TO BUY OR SELL N RUN AWAY ?

On Friday GOLD price fell by Rs. 1000/- and on Saturday it again fell by Rs. 250/- so within matter of 2 days GOLD declined by Rs. 1250/- so is it right time to buy gold ? Also this fall is predictable or  unpredictable ?

Whatever may be the reason technical charts are showing possibility of fall in gold prices from Jan  only.  See our post http://www.kolhapuritrader.blogspot.in/2013/01/gold-will-it-bounce-back-or-is-it.html which is posted on 27 Jan.

Now the down trend in gold has been confirmed.

CHART 1

In the above weekly chart you can clearly see that the support 1 approximately at 29100-29200 level got broken last week. so price may target 26000 in next 3-6 months. Even it may reach 20000 or lower than that in next couple of years. So the answer is simple this is not time to buy but is time to sell the gold. Unless and until there are signs of trend reversal henceforth gold is sell on rise. 

CHART 2

In the above daily chart, we can see that there is pin bar on Saturday, so there may be bounce back which will be confirmed by Monday price action. So in short term gold price may bounce back and may target / test support 1 shown in chart 1, where it will face resistance and start to fall once again to target support 2 shown in chart 1. So the future price action may be as shown in   chart 3 below.

CHART 3

For those who are interested to read more about pin bar here is link PIN BAR

DISCLAIMER: This Blog is meant for sharing our trading and investment ideas only and no calls to be taken as trading / investment recommendation. Visitors please do your own research or consult your advisers for safe trading, investing.

NIFTY AT CRUCIAL SUPPORT

NIFTY DAILY

The daily chart of NIFTY given above is self explanatory.

The current up move in NIFTY from june 12, taken support every time it closed below 50sma & 50 ema.

See it has taken support at the trend line shown in green colour thrice july, sept & nov 12. Now once again nifty is near this trend line, so it may take support in the region of 5875- 5950.

If it closes below this green trend line for 2-3 days  it may correct up to 5800-5825 which coincides with 100 sma and previous resistance shown in red colour.

So looks like this is buying opportunity. To be on the safer side buy when it gives close above 50 EMA which is right now 5960, with the low formed will be as stop loss.

GOLD -- WILL IT BOUNCE BACK OR IS IT ENTERING DOWN TREND ?

This is weekly chart of GOLD-MX. It is trending in a channel and given breakout above the channel on week ending 6/8/11. But recently it entered the channel  once again.   It may be false breakdown but as of now until and unless it gives close above upper trend line gold is sell on every rise. And it may target lower trend line approximately 29000-29500

NEXT TARGET ? 6150-75

On 3'rd Dec in this post ? MARCHING TOWARDS 5950, 6175, 6300 we have mentioned that " The hurdles for this are shown by 3 red lines in above chart which are at level of approximately 5950, 6175,6300. NIFTY may start correcting/ falling from these levels, but we will see for reversal signals on chart. ". On 6,7,11 dec it made high near 5950 level and started correction. After that it consolidated in very small range of 5850- 5950 (roughly) almost for 18 trading sessions it finally gave break out above 5950 and closed at 5993.25. So now if it holds 5850-65 range on daily closing basis now it will target it next huedle around 6175 and from this level it may start correcting.

DISCLAIMER: This Blog is meant for sharing our trading and investment ideas only and no calls to be taken as trading / investment recommendation. Visitors please do your own research or consult your advisers for safe trading, investing.