VIEWS WITH TRADING STRATEGY FOR 18th FEBRUARY 2009

MCX Gold April: Moving in line with our expectations. It has tested the important resistance at 15578. Supports are at 15340 followed by 15227 now.Ideally, a test of 15818 or even higher towards 16265 can be seen as long as supports hold. S1: 15362 S2: 15158 R1: 15563 R2: 15832

MCX Silver Mar: Supports are at 22460 followed by 22233 now. A test of 23660/23740 looks likely as long as supports hold. Fall below 21860 to dent our bullish view. S1: 22500 S2: 22182 R1: 23000 R2: 23450

MCX Copper February: Resistance is at 161.8/163. However, as long as 164/166.3 resists any upside attempts, we favor a fall towards 151 or even lower. S1: 157 S2: 153 R1: 162 R2: 166

MCX Crude Oil March : A bullish correction can be seen on a rise above 1940 for a possible test of 1995/1997 initially. There is a possibility for an extension towards 2055 too. Fall below 1903 to neutralize our bullish expectations.S1: 1945 S2: 1880 R1: 2029 R2: 2085

MCX Zinc Feb: - Prices may move down and test support at 54.25 level which if breached can take prices to 53.75 level. Rallies if any are suppose to get resistance at 55.25 .S1: 54.25 S2: 53.7 R1: 55.25 R2: 55.7

MCX Nickel Feb: Free fall of Nickel may get support at 490-500 levels. Rallies if any likely to capped below 515 for move towards 470 level.S1: 492 S2: 481 R1: 515 R2: 530

MCX Natural Gas Feb: - Reversal in price may be seen if prices cross 215 level finding resistance at 221. S1: 209 S2: 204 R1: 215 R2: 221

MCX Mentha Oil Feb: - Supports are at 502 levels now. Rallies could find resistance at 510/512 levels for a move lower to test the supports.However a rise above 512 could see prices correct further towards resistance at 519 levels. S1:502 S2:497 R1:511 R2:516

TRADING STRATEGY ::

SILVER MCX MARCH ::
The trend is up.
Hold your long positions with a stop loss at Rs 21495.
Further buy only on a rise above Rs 22990.
Intra-day traders can wait for a fall below Rs 22423 and when it rises above Rs 22423 then buy with the low below Rs 22423 as the stop loss.
MACD histogram is now in the positive zone. The 14 day RSI is moving down and now above the 70 mark.
Open interest witnessed significant fall with the rise in price indicating short positions unwinding.
Resistance is seen at Rs 23351 – Rs 23817.

GOLD MCX APRIL ::
The trend is up.
Hold your long positions with a stop loss at Rs 14735.
Further buy only on a rise above Rs 15565.
Intra-day traders can wait for a fall below Rs 15264 and when it rises above Rs 15264 then buy with the low below Rs 15264 as the stop loss.
MACD histogram is in the positive zone. The 14 day RSI is moving up and now above the 70 mark.
Open interest witnessed significant rise with the rise in price indicating fresh long positions build up.
Resistance is seen at Rs 15790 – Rs 16089

INTERNATIONAL SPOT GOLD ::

A trend line taken from the high was plotted yesterday and shown on the chart as well. A breakout of the same was witnessed yesterday.
The rise yesterday was a large one therefore we could find dip during the day towards the intra-day support levels before making any further attempts to cross the yesterday high of 974.2$.
Support will be at 961$-948$-926$. Resistance will be at 975$. On rise above 975$, expect a further rise towards 982$ and 995$.
In spite of the rise yesterday, corrective dip should be used for buying.
On the hourly chart, we had shown a breakout yesterday and the target of 969$ was attained. On the chart, we have shown the retracement level of the last corresponding rise from 939$ to 974$. The retracement levels are placed at 961$-956$-952$.
Traders can trade long again on rise above 975$ and take profit at current price to 975$ as the opportunity arises.

INTERNATIONAL SPOT SILVER ::

A Channeled rise continues. Corrective dip to support of 13.95$-13.68$ can be used for buying with a stop loss of 13.53$. Book profits on rise towards 14.37$-14.64$ as the opportunity arises on older buy positions.

The hourly chart suggest that we could see some profit booking which could bring the price to test the support level before making any further attempts to move higher.
Traders can trade long again on rise above 14.23$.