Silver Precariously Poised

The NYMEX Silver March futures are trading with a loss of 1.3 per cent around $ 16.845 as of 1630 hrs. IST.

The NYMEX Silver futures have been taking support around the 50-DMA (Daily Moving Average) at $ 16.7917 for the last three trading sessions.

Today so far, once more, the white metal contract has touched a low of $ 16.79.

As per the daily Fibonacci charts, the S-3 (support) for Silver is at $ 16.785, which has been held so far in trades.

In case, Silver March contract breaks below the $ 16.785, the next significant support is around $ 16.74, below which the white metal can slide towards the weekly S-1 (support) at $ 16.28-odd levels.

Hence, the Silver futures seem to be precariously poised in trade today. The NYMEX contract needs to sustain above $ 16.894, for fresh gains to emerge.

As per the daily Fibonacci charts, NYMEX Silver March futures are likely to seek support around $ 16.894-16.840-16.785, while face resistance around $ 17.246-17.30-17.355.

The weekly Fibonacci charts indicates support for Silver around $ 16.28-16.138-15.993, while face resistance around $ 17.20-17.343-17.487.

Among the key momentum oscillators - the MACD (Moving Average Convergence-Divergence), the ADX (Average Directional Index) and the Stochastic Slow are in favour of the bears. The 14-day RSI (Relative Strength Index), however, is in neutral mode.

Meanwhile, the MCX Silver futures too have declined over a per cent (Rs. 448) at Rs. 37,350.

MCX Gold Support Seen At Rs. 26,700

After declining almost 4 per cent last week, the MCX Gold futures have started the week on a cautious note with a gain of 0.5 per cent on Monday.

There are two positive developments for the MCX Gold futures - one each on the daily and the weekly charts.

As per the daily charts, the MCX Gold April futures have bounced back after testing support around the lower-end of the Bollinger Band at Rs. 26,765-odd levels.

Hence, one can expect Gold futures to seek support around Rs. 26,700-odd level as per the daily charts.

Secondly, Gold futures seem to be finding support around the 20-WMA (Weekly Moving Average) at Rs. 26,850-odd levels.

Given the duo-support factor, Gold prices may not witness a steep fall in the recent days.

As per the daily charts, Gold futures can test the 50-DMA on the upside at Rs. 27,100-odd level, above which it may or target the 50-WMA at Rs. 27,550-odd level.

As per the daily Fibonacci charts, the MCX Gold April futures are expected to seek support around Rs. 26,884-26,865-26,845, while face resistance around Rs. 27,005-27,023-27,042 today.

The weekly Fibonacci charts, indicates support for Gold futures around Rs. 26,355-26,220-26,080, and resistance around Rs. 27,245-27,385-27,525.

The MCX Gold futures so far has given a mixed signal, by registering the day's high at the opening bell at Rs. 26,963 (open and high are same) - which is a bearish indicator. On the other hand, Gold has taken support around the daily S-2 (support) at Rs. 26,865 (day's low so far Rs. 26,871).

One needs to keep a close eye on the daily S-2 and S-3, in case, Gold breaks below daily S-3, the contract may witness a steeper fall towards Rs. 26,700-odd levels.

Happy Trading till then.

NYMEX Gold Needs To Break Above $ 1,240

The NYMEX Gold April futures have shed 4.6 per cent in the last two weeks, and given a clear sell signal on the daily charts.

As per the daily charts, NYMEX Gold futures have broken below the lower-end of the Bollinger Band which is at $ 1,240.

Going ahead, the near term bias is likely to favour the bears as long as Gold trades below $ 1,240 per ounce.

In other words, the NYMEX Gold contract needs to bounce back above the lower-end of the Bollinger Band at $ 1,240 for fresh gains to emerge.

On the positive front, Gold futures for the last three trading sessions have managed to find support around the 50-DMA at $ 1,232.

Today in the day, so far, Gold April futures have touched a low of $ 1,234.50, and are now trading with a gain of 0.3 per cent at $ 1,238.

In case, Gold futures manage to break above $ 1,240, the contract may spurt towards the 200-DMA (Daily Moving Average) at $ 1,247.

The medium-term trend is negative as Gold futures have retreated after testing resistance around the higher-end of the weekly Bollinger Band at $ 1,291-odd level. The weekly charts indicate a correction towards $ 1,213-odd levels.

As per the weekly Fibonacci charts, the NYMEX Gold April contract may seek support around $ 1,218.83-1,208.95-1,201.95, while face resistance around $ 1,260.37-1,267.25-1,274.25.

Among the key momentum oscillators - the MACD (Moving Average Convergence-Divergence), the ADX (Average Directional Index) and the Stochastic Slow are all in favour of the bears on the daily charts. The 14-day RSI (Relative Strength Index), however, is in neutral mode.

Meanwhile, the MCX Gold April futures have gained 0.5 per cent at Rs. 26,950.

Sensex, Nifty Below 20-DMA

After declining nearly 3 per cent in the last five trading sessions, the BSE Sensex and the Nifty are down over a per cent each in trades so far today taking cues from the exit polls for the recently concluded Delhi polls.

Six out of seven exit polls from various media, have predicted a majority government by the AAP (Aam Aadmi Party) - Arvind Kejriwal. Narendra Modi-led Bhartiya Janata Party (BJP) seems second in the race to Delhi.

The markets have been softening off late following the steep climb to record high levels, lower-than-expected corporate earnings and global worries. Kejriwal's likely victory in the Delhi polls followed by populist measures by the government could be the newer reasons for the markets to correct deeper into red.

The counting for the Delhi polls is scheduled for Tuesday. Till then, expect market to remain choppy.

The Sensex and the Nifty have broken the crucial near-term support at the 20-DMA (Daily Moving Average) so far in trades today and are currently hovering around 28,427 and 8,575, respectively.

In the case, the downward momentum continues, the key benchmark indices may continue the slide to test the next major support around the 50-DMA. The 50-DMA for the BSE Sensex is at 28,050-odd level, while support for the Nifty lies at 8,445.

Further, the Sensex has all dropped below the key quarterly Fibonacci level at 28,600-odd levels. This indicates that the BSE index may now drop to 28,140 or steeper down to 27,500-odd levels.