Gold February contract on MCX inched 390 rupees down to settle at 26608. Gold has settled well below 26700 zones which has worked as a turning point in past. Metal has headed a low of 26538 and settled just nearer the 50 days SMA that stands near 26646. Closing below 26646 and 26700 zones indicates some weakness in this counter. Comex gold has taken support at $1170 and stability above this level would keep this metal in safe zone for bulls. Today support would be at 26500 any move below this level would bring 26300-26200. Key support would remain at 26000 and closing below that level would bring more weakness. Resistance is now seen near 27100 any move above that level would bring more charm and then we will see this commodity heading towards 27300-27600 and more upside.
What is moving average?
Moving average is basically lagging indicator which is giving us signal about the trend. If market trades above the moving averages continuously that mean market is moving in uptrend if market trades below the moving averages continuously that mean market is moving in downtrend. Moving averages always gives big targets.
Two types of Moving average is popular:
Simple Moving Averages (SMA)
Exponential Moving Averages (EMA)
The Simple Moving Average (SMA) is used mainly to IDENTIFY TREND DIRECTION, but is commonly used to generate BUY AND SELL SIGNALS. The SMA is an average, or in statistical speak - the mean.
GOLD RANGE IS NOW 26500 TO 27100...FURTHER BIG MOMENT POSSIBLE ONLY AFTER A BREAKOUT.
Note: For more detail about the moving averages Call NIFM 01145646322, 9910300590, www.nifm.in
Disclaimer: The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the Commodities and forex mentioned. Readers using the information contained herein are solely responsible for their actions. The information and views contained herein are believed to be reliable but no responsibility or liability is accepted for eg of act or opinion. Analysts may or may not have trading or investment positions in the commodity and forex mentioned herein.
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