SPECIAL DIRECTIONAL TRADE REPORT 22nd
July, 11
1
MCX GOLD– Aug Contrac t (CMP `22890 )
Technical Outlook & Trading Strategy:-
The prices of Gold witnessed a strong rally from the lows of ` 21614 levels as on 01st
July, 2011 to
register a high of ` 23320 levels as on 19th
July, 2011. Since then the price of Gold has been consolidating
within broad ranges of ` 23275 to ` 22930 levels. But, as outlined in the chart above the price pattern of
Gold within this consolidation range has formed a bearish head and shoulder pattern on the intraday
charts. The neckline support for the said pattern is placed at the ` 22960 levels and the prices have now
registered a breakdown below the same on a closing basis. A head & shoulder price pattern wherein the
prices have registered a breakdown below its neckline support is an extremely bearish technical setup
and will have a negative effect for the future price movements of an index/stock or a commodity. The
measuring implication of the pattern suggests that the price can decline to levels of ` 22600 levels. The
sell off witnessed during the previous session was also on the back of strong surge in volumes which is a
clear indication that the prices were under supply pressure. Some of the other technical factors that
support the bearish argument are the sell signal given by the MACD indicator and the price sustaining
below all of its key moving averages.
We recommend traders to sell 50% between ` 22860—` 22890 levels and again on rallies to ` 22940—
` 22970 levels with a stop loss placed above ` 23056 levels for initial downside target of ` 22700 levels
followed by the implied target of ` 22600 levels.
MCX GOLD
AUG CONTRACT
OPEN ` 22926
HIGH ` 22930
LOW ` 22877
CLOSE ` 22890
SPECIAL DIRECTIONAL TRADE REPORT 22nd
July, 11
2
Disclaimer
The views expressed are based purely on Technical studies. The calls made herein are for information purpose only. The information and views presented here are
prepared by Matrix Solutions and his associates. The information contained herein is based on their analysis of the Charts and up on sources that are considered reliable.
We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based
upon it. The investments discussed or recommended on this Website may not be suitable for all investors. Past performance may not be indicative of future performance.
Some of the securities/commodities presented herein should be considered speculative with a high degree of volatility and risk. Investors must make their own
investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. You specifically
agree to consult with a registered investment advisor, which we are not, prior to making any trading decision of any kind. While acting upon any information or analysis
mentioned on this website, investors may please note that neither Matrix Solutions nor any person connected with him accepts any liability arising from the use of this
information and views mentioned herein. Matrix Solutions and his affiliates may hold long or short positions in the securities/commodities discussed herein from time to
time the services are intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein
constitutes an offer or an invitation to make an offer, to buy or sell any securities/commodities, or any options, futures or other derivatives related to such
securities/commodities. Part of this website may contain advertising and other material submitted to us by third parties. We do not accept liability in respect of any
advertisements. You acknowledge that any warranty that is provided in connection with any of the products or services advertised on this website described herein is
provided solely by the owner, advertiser, manufacturer or supplier of that product and/or service, and not by us. We do not warrant that your access to the Website
and/or related services will be uninterrupted or error-free, that defects will be corrected, or that this site or the server that makes it available is free of viruses or other
harmful components. Subscribers are advised to understand that the services can fail due to failure of hardware, software, and Internet connection. Access to and use of
this site and the information is at your risk and we do not undertake any accountability for any irregularities, viruses or damage to any computer or Mobiles that results
from accessing, availing or downloading of any information from this site. We do not warrant or make any representations regarding the use or the results of the use of
any product and/or service purchased in terms of its c ompatibility, correctness, accuracy, reliability or otherwise. You assume total responsibility and risk for your use of
this site and site-related services. A possibility exists that the site could include inaccuracies or errors. Additionally, a possibility exists that unauthorized additions,
deletions or alterations could be made by third parties to the site. Although we attempt to ensure the integrity, correctness and authenticity of the site, it makes no
guarantees whatsoever as to its completeness, correctness or accuracy. In the event that such an inaccuracy arises, please inform our staff so that it can be corrected.
Price and availability of products and services offered on the site are subject to change without prior notice. To the extent we provide information on the availability of
products or services you should not rely on such information. We will not be liable for any lack of availability of products and services you may order through the site.
Transactions shall be governed by and construed in accordance with the laws of India, without regard to the laws regarding conflicts of law. Any litigation or any action at
law or in equity arising out of or relating to these agreement or transaction shall be subject to Mumbai jurisdiction only and the customer hereby agrees consents and
submits to the jurisdiction of such courts for the purpose of litigating any such action. A CALL ON SMS is a service given only to members with the sole intention to aid
their information means. We do not guarantee any accuracy of generation, databases, delivery timings etc. while giving this facility. Depending on your location, service
provider, medium of communication and delivery, the service may be at times slow or not there at all. We do no t guarantee completion of delivery. We shall in no way be
responsible for delays in receiving SMS on the mobile caused due to delivery methods chosen by the Service Provider, rush on the Service Provider’s Servers or any other
reason whatsoever that may cause such a delay. Use of this website and its services constitutes acceptance of Di sclaimer, Privacy Policy and Terms of Use.
Top Related