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Technical Breakouts from 01st October-06th October 2012

MCX Gold: Medium Term Bullish

MCX Gold corrected marginally last week and again tested strong support of Rs.31100 level. The trend still looks bullish with immediate support is near Rs.31350 level. Thus any dip towards the same provide a medium-term buying opportunity.

The 14-period RSI is holding above the support line and is close to the 50 mark which indicates bullish momentum overall.

Unless price closes below Rs.31100 level on a daily basis, buying on dips is advisable.

MCX Silver: Short Term Bullish

MCX Silver has been trading in an upward sloping trend channel C-C1 since the past nine months. The price now has immediate support at the previous high near Rs.61500 level and an upside move till next major resistance at Rs.64300 level looks possible. Dips towards Rs.62000 level could be used as a short-term buying opportunity.

The 14-period RSI is in positive territory above the support line and is currently holding above the 50-mark. Hence, buying on dips would be the advisable strategy.

Unless price closes below Rs. 61500 level on a daily basis, buying on dips is advisable.

MCX Crude Oil: Short Term Bullish

MCX Crude Oil fell sharply last week to a 2 month low near Rs.4800 level after breaking out of an expanding triangle pattern (a reversal pattern). However, the price recovered some of its losses later in the week to close near Rs.4890 level. The price is expected to correct further this week and could head towards the next support on the daily chart at Rs.4760-4780 level. However, this could be used as a short-term buying opportunity for a higher target of resistance at Rs.4990 level.

The 14-period RSI is close to support line which could help support the price.

Hence, buying crude oil on dips towards Rs.4780-4800 levels would be the advisable strategy as long as the price sustains above support at Rs.4760 level on a daily closing basis.

MCX Copper: Medium Term Bullish

MCX Copper traded negatively last closing in the red, partially erasing gains made in the last one month. The price looks negative in the very short-term and is likely to fall further towards horizontal support at Rs.436 level. However, the price is expected to take support and rebound from this level to head higher in the medium term. Hence, dips towards immediate support at Rs.436 level could be used as a buying opportunity.

The 14-period RSI is currently pointing lower and could head towards the support line.

As long as price sustains above trendline support S at Rs.429 level, the medium-term trend would be bullish.

MCX Zinc:Short Term Bullish

As shown on the weekly chart, MCX Zinc has been forming symmetrical triangle price pattern (R-S) since past two years. Last month the price has breached trend line resistance R at Rs.109 level and rallied sharply to hit a 17-month high at Rs.115.15 level. Hence, the medium-term trend looks bullish. Any dip towards Rs.109 level should be utilized as a buying opportunity.

The 14-period RSI has also breached a triangle consolidation (as shown by dotted lines), hence further upside in price is possible.

As long as the price sustains above the support of Rs.108 level on a daily closing basis, buying on dips would be the advisable strategy for the short-to-medium term.

NCDEX Soybean: Short Term Bullish

As shown on the daily chart, NCDEX Soybean is moving in a downward sloping trend channel C-C1 forming lower tops and lower bottoms. Last week price fell sharply to close the week near Rs.3230 level. Momentum indicator RSI (14 periods) is currently in oversold state and a possibility of pullback can not be ruled out. The price has strong resistance of Rs.3450 level and looks bearish as long as it is sustaining below the same.

The 14-period RSI is well below the 50 mark and is pointing downwards indicating negative momentum.

Hence selling NCDEX Soybean on rise would be the advisable strategy for the short term.

NCDEX Chana: Short Term Bearish

As shown on the daily chart, NCDEX Chana is moving in a downward sloping trend channel C-C1 forming lower tops and lower bottoms. The price consolidated last week in a broad range of Rs.4250-4550. The 14-period RSI is taking resistance of a downward sloping trend line (as shown by dotted line) indicating negative momentum.

As long as resistance at Rs.4550 is held any rise would be a good selling opportunity for the downside target of Rs.4235 level. Hence selling NCDEX Chana on rise would be the advisable strategy for the short term.

NCDEX Sugar: Short Term Bearish

NCDEX Sugar has been in an uptrend since the past three months forming higher tops and higher bottoms supported by trendline S. The price has recently breached trend line support at Rs.3590 level and is sustaining well below it since then. The price currently looks headed lower towards immediate support at Rs.3350 level.

The 14-period RSI is taking downward sloping trendline resistance and is currently pointing lower indicating bearish momentum.

As long as price sustains below Rs.3500 level on a daily closing basis selling NCDEX Sugar on rise would be the advisable strategy for the short term.

NCDEX Wheat: Short Term Bearish

NCDEX Wheat after breaching trend line support S at Rs.1550, is forming lower tops and lower bottoms. Price is also moving in a short term downward sloping trend channel C-C1. As long as price is sustaining below Rs.1520 level (previous bottom), short term trend remains down. The price now could head lower towards immediate support at Rs.1405 level in the short-term.

The 14 period RSI is currently well below the 50 mark and is facing trendline resistance which indicates negative momentum.

Hence selling NCDEX Wheat on rise would be the advisable strategy for the short term.




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