MCX Gold February futures continued to consolidate in the broad range of Rs 48,500-49,700. Meanwhile, the key support for Feb futures exists around Rs 48,450, where 200 DEMA coincides with the 78.6% Fibonacci retracement of the recent up move. On the upside, immediate resistance exists around Rs 49,400 (21 day EMA), which could be the key level for the day. On the momentum front RSI is trading below 50 (36) suggesting sideways to weaker trend. So for the day price is likely to continue trade in the broad range of Rs 48,450-49,450 with a sideways bias. Only a close below Rs 48,450 would extend the downside towards Rs 48,100.
Strategy:
Buy MCX Gold Feb at Rs 48,600 with a target of Rs 49,200 and a stop loss at Rs 48,400.
MCX Silver March futures have finally breached the higher band of the consolidation phase at Rs 67,850. Meanwhile, key support holds around Rs 66,700 (21 Day EMA) and key resistance exists around Rs 69,550, followed by Rs 70,500 (Previous top). On the momentum front, RSI has moved above 50(57) suggesting strength in the momentum. Moreover, a bullish crossover of 5 and 21 day EMA strengthened the bull case. So in the near term, price is expected to move in the range of Rs 66,700-69,550 with sideways to positive trend. Only a close below Rs 65,500 would change the trend to neutral.
Strategy:
Buy MCX Silver Mar at Rs 67,200 with a target of Rs 69,550 and a stop loss of Rs 65,500.
(Ravindra Rao is VP-Head Commodity Research at Kotak Securities)
