INTERNATIONAL SCENARIO
Let us analyse the both International and National scenario to identify the trend of the gold.
Look at the international price of gold as on 19th April 2013, the gold closed at $ 1400.65 per ounce which is the lowest closing in the weekly chart. Now technically gold is in the down trend in weekly as well as monthly chart. The major resistance can happen once again in $ 1520. The immediate support zone is $ 1320 level. Since gold shows weakness in both weekly as well as monthly look for opportunity to short. So, long term point of view gold is not in the buying zone and you have to wait. In the medium term gold will have $200 range volatility and you can look for opportunity to buy when gold comes near to $ 1320 level and look for shorting opportunity when gold nearing $ 1520 level. In the short term look for shorting opportunities when market face resistance at $ 1424 and $ 1446 levels.
NATIONAL SCENARIO
Look at the Mcx Price of Gold (June Contract) as on 19th April 2013, the gold closed at Rs.26047 for 10gram pure gold (24 Carat) which is the lowest closing in the weekly chart. Now technically gold is in the down trend in weekly as well as monthly chart.The major resistance can happen once again in Rs.27936. The immediate support zone is Rs.25270. Since gold shows weakness in both weekly as well as monthly look for opportunity to short. So, long term point of view gold is not in the buying zone and you have to wait. In the medium term gold will have Rs.2700 range volatility and you can look for opportunity to buy when gold comes near to Rs.25270 level and look for shorting opportunity when gold nearing Rs.27936 level. In the short term look for shorting opportunities when market face resistance at Rs.26250, Rs.26380 and Rs.26725 levels.
Both international and national scenario suggests that the gold is in the down trend and look for opportunity for short. Hence it is advisable not to buy in the current levels.
CA.AP PRAKASAN, CEO
PRAKASAN ASSOCIATES
Email: www.prakasanassociates.com
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