4 April 2016

TECHNICAL ANALYSIS OF COMMODITY FOR 4 APRIL 2016

“SELL SILVER MAY @ 36200 SL 36550 TGT 35950-35600.”
SILVER: Silver trading range for the day is 34634-37492. Silver dropped as an optimistic U.S. March jobs report signaled strong improvements in labor market likely pushing a June interest rate hike by Fed back on the table. The U.S. economy finished the first quarter with a strong March as employers continued adding jobs at a healthy pace. U.S. employers added 215,000 jobs in March, the payrolls report showed, against expectations for 205,000.
CRUDEOIL: In line with expectation crude oil prices witnessed massive fall by breaching the key support of 2550 and tumbled to the low of 2453 and settled almost near the week lows. On immediate basis the support is at 2414 of 0.38% retracement of the short term rally seen since (1805 -2800). Breakdown below it will extend the fall towards crucial support of 2350. Break 2350 will once again change the overall trend to bearish. For the week, we expect crude oil prices to continue to trade lower and recommend selling around 2520 for above mentioned targets.
GOLD: For the fourth consecutive week the gold prices on MCX continued to quote lower and fell to the low of 28280 and finally settled at 28466. On the weekly chart, prices have exactly dipped till the immediate support of 28271 and recovered from the same and ended above it. Currently, prices are likely to take the supports of 28270 and as long as it holds above it a slight recovery can be seen till 28800 and may consolidate within the range of 28270 – 28800. However breakdown below 28270,will provide further fall till 38.2% retracement level, i.e., 28322 of the rally from (24654 – 30472).As the overall trend still remains bearish, the pull backs towards 28800 can be utilized for initiating short positions.

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