Tech Musing : Precious metals

In my previous post on precious metals on 28^th August 2013 I mentioned that I was expecting consolidation in precious metals before they finally break out. Since then silver and gold has corrected and have completed 61.8% and 50% retracement respectively.

If we look at the given chart of gold we can see that gold has done its 50% retracement at 1307 levels and I expect gold to start a new upmove from these levels. Traders can buy gold at CMP keeping 1270 as stop loss and 1485 as target.

 

Similarly silver corrected from 25 USD to 21.50 USD and has completed 61.8% retracement. Traders can buy silver at CMP keeping a stop loss of 20.50 and target of 26 – 29 USD. 

Tech Musings:- INR update

In my previous post on INR on 28^th August 2013 I wrote, “I feel that the current rally in INR is over stretched and we will see INR appreciating sharply in next one week. I don’t think INR is now ready to move to 80 levels.”   

As expected INR corrected sharply and is currently trading at 63.84 levels and has appreciated by almost 8% in last ten days. If we look at the first chart of INR we can see that retracement levels for the current rally are at 63, 61.25 and 59.50 levels. I expect the pull back in INR to continue in next few days.

 

If we look at the second chart in INR we can see that last time when INR appreciated 30% from 45 to 58 levels it consolidated for a period of one year before breaking out again. INR has similarly given a 30% upmove and should do time and/or price retracement for this move. This means that either we will have a long period of consolidation or sharp pull backs in INR or both.

Ultimately INR will move towards 80 levels in next two or three years.