Outlook, trading strategies for gold & silver

By Ravindra Rao
Kotak Securities

Gold
MCX gold price has been hovering in the Rs 51,800-51,100 channel with flattened Bollinger Bands indicating a sideways trend. The immediate resistance is at Rs 51,450 followed by Rs 51,800 mark, while support is around Rs 50,720 (Bollinger middle band ) followed by Rs 50,300. The relative strength index, or RSI, is in the 40-60 range, suggesting a trading zone.


Strategy

• BUY MCX Gold Dec at Rs 50,900
• Target Rs 51,450; Stop loss Rs 50,700

Silver
MCX silver made a Doji candlestick, suggesting indecision between the bulls and the bears. The supply zone is at Rs 62,800 followed by Rs 64,200. Likewise, the immediate support is at Rs 60,800/60,000. The Stochastic momentum oscillator is at 64, signifying a higher range closing, supporting the bulls.

Strategy

• BUY MCX Silver Dec at Rs 61,500
• Target Rs 62,800; Stop loss Rs 60,800