Wednesday CX Gold February futures had noticed a decline towards the lower band of the merger range of Rs 48,600-49,700. Meanwhile, important assistance for Feb future exists around Rs 48,450, where 200 DEMA relate with the 78.6% Fibonacci retracement of the current move upward. On the upside, immediate resistance exists around Rs 49,100 5 days EMA which is followed by 21 days EMA (49,450), which could be an important level for the day. On the momentum front, RSI is exchanging below 50 (39) indicating sideways to a weaker trend. The price is likely to continue in the wider trading range of Rs 48,450-49,450 with lateral bias. It would only close below Rs 48,450 and expand the downside towards Rs 48,100. Sell MCX Gold Feb at Rs 49,100 with a target of Rs 48,500 with a halt loss of Rs 49,450.
MCX Silver March futures pursued the way of the gold and had glimpsed a decrease towards the shorter band of the growing channel. Meanwhile, important assistance snatches around Rs 64,700, a lower band of the channel, and main resistance exist around Rs 67,850, top of Doji candle. On the momentum front, the RSI is shifting around 50 (49) indicating a lateral trend. Nevertheless, it requires sustaining above 50 to recover the momentum and shove the prices higher. Price is anticipated to shift inside the span of Rs 67,850-64,700 with a lateral trend. Only a strong move out of the spectrum of Rs 64,700-67,850 would agree on the additional direction.
