Gold will remain range bound: Rajesh V

Commentary

oi-Shoaib

By Rajesh V

Published: Friday, September 23, 2011, 9:27 [IST]

After the FOMC meeting was over. The Federal Reserve announced that it will be buying short term bonds and sell more of long-term bonds in order to pep up long-term borrowing. This has sent the stock and commodities market around the world for a tail-spin.

Gold – Oct:
As all other commodities fall sharply, gold becomes range bound between Rs 27,500 & Rs 28,500; next support level is Rs 26,800 in gold.

For intraday, if gold hold above Rs 27,800 levels we can see pull back in gold; support can be at Rs 27,720 levels.

Silver – Dec:

Silver has next crucial support levels at Rs 60,400; close below this it may test Rs 58,500 in coming days.

For intraday – silver has immediate support at Rs 61,400 / 61,000 / 60,600 levels; only above Rs 63,000 we can see bull’s hope in silver and Rs 63,700 is next resistance level in intraday.

As market is extremely volatile since yesterday, it is advised that ORB levels should not be followed, for this reason given below is just the support and resistance level.

Copper – Nov:

Supports: Rs 382.40 / 379.60 / 377.70
Resistances: Rs 385.90 / 387.90 / 390.80

Nickel – Sept:

Supports – Rs 937.70 / 931.20 / 921.90
Resistances – Rs 947 / 953 / 962.70

Crude – Oct:

Supports – Rs 3,992 / 3,967 / 3,926
Resistances – Rs 4,046 / 4,071 / 4,112

Rajesh V. Ravanappan is a practitioner of technical analysis. He has eight years of experience in broking industry. He is a contributing writer for www.goodreturns.in. You can contact him at rajeshvravanappan (at) gmail (dot) com

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