January 17, 2011

  • Gold is trading near its 20 week moving average.
  • Price is also resting above an important support line in weekly chart.
  • Any correction here would mean breaking the support line and 20 week moving average which can extend the correction in GOLD.

  • Nifty futures one minute chart with intraday range from 5625 - 5695
  • Violation of this range can give 40 to 50 points minimum.
  • Nifty is trading close to its 200 DMA so one can expect a bottom formation to start forming here.
  • So the support based on 200 DMA and the channel bottom comes near 5550 - 6000 level.
  • Any violation of the above level 5550 - 6000 on closing basis can drift nifty down to 5350 - 5450 band.
  • Yahoo weekly chart is in a triangle type consolidation pattern.
  • Price is trading above its 200 and 50 day moving average.
  • 50 DMA line is acting as support in daily chart. If this moving average gets broken on closing basis we may see a downside breakout for this pattern.
  • If price continues to trade above 50 DMA we will see an upside breakout.


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My Favourite Quote

"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore