By Ravindra Rao
MCX Gold February futures continued to consolidate in the same range with lower side support near Rs 48,600 and upside resistance around Rs 49,700. Meanwhile, price is facing resistance of 21 day EMA (49,550), which could be the key level for the day, followed by the higher end of the consolidation range at Rs 49,700. On the momentum front RSI is trading around 50 (44) suggesting a sideways trend. RSI needs to move above 50 if the bulls have to take the prices higher. So for the day price is likely to move in the broad range of Rs 48,600-49,550 with a sideways bias.
Buy MCX Gold
MCX Silver March futures have been moving inside the upward rising channel with lower band support near Rs 64,700. On the upside key resistance exists around Rs 67,850 (top of doji candle). This needs to be breached for the rally to extend towards Rs 68,500, followed by Rs 69,800. On the momentum front RSI is moving around 50(49) suggesting a sideways trend. However it needs to sustain above 50 to regain the momentum and push prices higher. For the day price is expected to move inside the range of Rs 67,850-64,700 with sideways trend. Only a decisive move out of the range Rs 64,700-67,850 would decide the trend.
Buy MCX Silver Mar at Rs 65,850 with a target of Rs 67,550 and a stop loss at Rs 64,600.
(Ravindra Rao is VP-Head Commodity Research at Kotak Securities)