StocksMarket | Metals | Investment | Trading
  • Blog
  • Blog Archives
    • Opinion 2nd
    • Opinion by Ravi Chandra
  • Tutorials
  • Videos
  • Connect With Us
  • About Us
  • Contact Us
  • Disclaimer
    • Copyright
    • Privacy Policy

Should you buy into Gold after a 7000 rupee dip?

18/4/2013

0 Comments

 
Picture
Gold today is down Rs.7000 from a high that was made 5 months ago. In all the panic selling many investors would also be looking for buying opportunities, so the question naturally arises - Should you buy into Gold after a 7000 rupee dip?

The short answer, to should we buy into Gold now, is no as this is just the beginning of the dip; meaning the move has not stabilized yet for long term investors. The long answer is as follows. The present dip in Gold started with the break of a key support in Gold at 30148 in February 2013, starting an intermediate down trend. Two months after the break of support at 30148, we saw Gold break another key support at 28013 recently with a low of 25270 hence confirming the down trend to be larger. So what is the future of Gold?

Now the key support levels for Gold, as of today, are 23158 which we might see it touch & the other critical lower support level is 20027. The break of 20027 is highly unlikely, but if broken Gold may turn bearish for a very long time forward. The minor resistances are 28013 & 30148, the only major resistance for now will be 31218, and investors looking to buy should buy only above this resistance or wait for new resistance zones to develop, which will happen over the next few months.

R1 - 31218        S1 - 23158
R2 - 30148        S2 - 20027
R3 - 28013

There is always a possibility of a bounce back in Gold in the short term, but such moves should only be traded & not invested into. Counter trends on securities that are in a downward trend are only temporary & can result in heavy losses if invested into without the appropriate knowledge of trend reversals. Investors looking to enter Gold are advised to wait and watch for base formation, for now the trend in Gold is downwards with no signs of any quick or major turn around.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    December 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    April 2013
    March 2013
    February 2013
    October 2012
    August 2012

    Categories

    All
    Alembic
    All
    Allstate Corp
    Allstate Corp (ALL)
    American
    American Markets
    American Stocks
    Apple Computers
    Bharti Airtel
    Boeing
    Bombay Dyeing
    Calls
    Charts
    Commodities
    Crude Oil
    Currency
    Currency Pair
    Djia
    Dow Jones Industrial Average
    Emc
    EMC (EMC)
    Forex
    Gail
    Gas Authority Of India Limited
    Gold
    Hotel Leela
    Index
    India
    Infosys
    Ing Vysya Bank
    Investment
    Jdsu
    Jds Uniphase
    Kalindee Rail Nirman
    Metals
    Nifty
    Nyse
    Picks
    Reliance Industries
    Resistance
    Silver
    Stock
    Stocks
    Support
    Suven Life Sciences
    Swaraj Engines
    Usdaud
    USD/AUD
    USD/EUR
    Usdinr
    Us Markets
    Video
    Wockhardt
    Youtube

    RSS Feed

Powered by Create your own unique website with customizable templates.