BULLION OUTLOOK FOR 06-07 FEB 2017

SELL GOLD DEC @ 30560 SL 30400 TGT 30680-30820.

SELL SILVER DEC @ 43800 SL 43480 TGT 44180-44450.

Gold:  Gold trading range for the day is 28628-29088. MCX Gold price has faced resistance of its horizontal trend line at 28850 levels on the daily chart. Moreover, MCX Gold prices have been trading below 200 DEMA on daily chart.  Moreover, Momentum Indicator MACD has shown negative crossover on 4 hourly chart, which suggests downside pressure can be in the prices. For now, we expect prices should move lower towards 28450 levels in the coming trading sessions.

Outlook: Technically market is under short covering as market has witnessed drop in open interest by -1.14% to settled at 7048 while prices up 59 rupees, now Gold is getting support at 28768 and below same could see a test of 28628 level, And resistance is now likely to be seen at 28998, a move above could see prices testing 29088.

	R2	R1	S1		S2	TREND
GOLD	29200	29100	29000		28850	SIDEWAYS

Silver: Silver trading range for the day is 41272-42140. On the 4 hourly chart, MCX Silver price has been trading in rising wedge formation and prices have been facing resistance of its upper band of wedge pattern at 42400 levels. In addition, momentum indicator MACD has shown negative crossover on the 4 hourly chart, which indicates possibilities of further downside in the prices. For now, we expect prices to move lower towards 40800 levels in few trading sessions.

Outlook:  Technically market is under fresh selling as market has witnessed gain in open interest by 3.47% to settled at 13165 while prices down -4 rupees, now Silver is getting support at 41534 and below same could see a test of 41272 level, And resistance is now likely to be seen at 41968, a move above could see prices testing 42140.

	R2	R1	S1		S2	TREND
SILVER	41500	41200	41000		40800	SIDEWAYS