gold silver report 18/06/2010

The Rupee is currently trading at 46.15 levels. We had expected the test of 47.20 again which had reached some days back. Break of 45.50 has entered rupee in a bearish phase. Near term Exporters maintain some covers above 47.00 plus to be safe. Rupee bias still bearish target 47.00 Strong support is seen at 45.92 levels. Only break of 45.92 on a consistent basis would confirm a short term trend change. We also need the Nifty to close above the 5400 mark to confirm the trend change. Bearish.

 The EURUSD is currently trading at 1.2400 and in a clear downtrend but in the 4th correction wave and then a big 5 wave down to 1.19 atleast. Strong resistance at 1.2500 levels. We had suggested exporters to cover at every rise and we still maintain that. (Only EURO/USD leg , we can wait for covering USD/INR leg) . Our previous bearish targets 1.20 and below had reached few days back. (refer previous reports). We covered at 1.2320-50 levels yesterday and still suggesting covers for exporters. Bearish-target 1.19 & below . (EURUSD - 1.2400).Bearish

Gold is currently trading at $1246 levels and its bias is clearly on the upside. It has reached our next target of 1250 also . Buying on still dips remains the strategy. (Gold- $1246) Bullish

Dollar index's is in slight correction mode due to euro but would soon reach our target of 88-89 levels again. Maximum room till 85- 86.50 which would act as support. The powerful impulsive move is in line with our view of bullishness . Still room higher. (Dollar Index- 85.58) Overall Bullish

Silver

Respecting the harmonic scenario literarily, the metal reached the awaited technical objective of 18.85-click on the previous report link below-. We should put into our consideration that this proposed harmonic sequence might have been completed around 161.8% Fibonacci of BC leg at 18.85 zones. Thus; possible bearishness could be witnessed over intraday basis, supported by negative sign appearing on Stochastic.

ecommendation Based on the charts and explanations above our opinion is, selling silver around 18.75 targeting 18.15 and stop loss above 19.25 might be appropriate.

                         

Gold

Respecting our suggested scenario of CD leg's completion for the harmonic structure, the metal soared towards the technical objective at 1248.00 zones and it extended towards the psychological levels of 1250.00. The pullback from the aforesaid levels argues us to say that, potential downside actions could be seen over intraday basis, as the harmonic pattern is bearish. Stochastic supports this outlook.
Recommendation Based on the charts and explanations above our opinion is, selling gold around 1247.00 targeting 1228.00 and stop loss above 1262.00 might be appropriate