Buy Gold on dips to USD 1662; target USD 1695: Geojit
Geojit Comtrade has come out with its trading strategies on Gold. According to the research firm, one can buy Gold on dips to USD 1662 for the target of USD 1695 with a stop loss below USD 1648.
February 08, 2013 / 16:20 IST
Geojit Comtrade has come out with its trading strategies on Gold. According to the research firm, one can buy Gold on dips to USD 1662 for the target of USD 1695 with a stop loss below USD 1648.
Spot gold pared its early gains, clinging near its recent swing low, following a feeble Euro which weakened on renewed concerns over the health of the Euro zone economy. Euro drifted lower to a two week low against the dollar yesterday after the ECB president said policy makers will monitor the impact of rising currency. He also commented that the risks to the economy were on the downside and that economic weakness in the zone will likely continue in the coming months also. At the same time, they maintained the interest rates unchanged at 0.75 percent. Prices moved in a tight range of $1651-1685 regions for the last couple of weeks as brighter US economic releases and signs of reviving global growth reduced investor interest. The widely anticipated trade data from China for last month beat expectations, underscoring a recovering economy weighed on bullion as well.Exports from the country grew 25 percent a year earlier from a forecast of 17 percent. As per reports, gold production in China hit a record of 403 tonnes last year, surging six consecutive years, keeping the country as the world’s largest bullion producer. Earlier, gold exports from Hong Kong to mainland China soared 47 percent last year signifying a robust demand from the country. Anyhow, next week’s World Gold Council report will show whether China has surpassed India in the previous year as the top gold consumer. Looking ahead, for the day, US trade balance data would be the key event investors curiously watch out to get a direction on bullion.Consolidation in $1651-1685 regions is still progressing. Prices have been clinging just below the upper end of the wide falling trend channel for the last couple of weeks. In a very short term, prevailing candlestick formation looks to be exhausted and possibly break any of the sides of the range with immediate effect. A direct rise above the 50 day moving average resistance of $1685 could lift prices higher towards $1700 initially, but it has to break $1708 to call for sharp short covering rallies. Direct dips below $1651 can possibly target $1640 initially and later toward $1625/1580 levels. Volumes are strengthening a little compared to the previous week while the RSI is placed in the neutral zone.Trading strategies:
Key levels for the day: Upside Immediate: 1685/1696-1700 regions/1707 followed by 1737.
Downside Immediate: 1661/1652 followed by 1648/1637/ 1625/1580.
Buy above 1708 target 1720 SL below 1696. Buy on dips to 1662 target 1695 SL below 1648.
Buy above 1685 target 1699 SL below1672.
Sell at 1700 target 1684 SL above 1710. Sell below 1660 target 1651 SL above 1668
Sell below 1647 target 1625 SL above 1662.
Expect an initial choppy trading session possibly inside $1651-1685 levels. Any of the side breakouts would require suggesting fresh directional moves.
MCX Apr: Intraday Levels are: Resistance seen at: 30940/31100/31250/31330/31700.
Supports: 30650/30450/30300-30220/30110/29980/29850.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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