The Gold Rush - Is It Time To Rush Out?

 Monthly Chart

 Monthly Oscillator Chart

Gold has been on a bull run and doubled since it's bottom in October 2008. The rise continues despite the continuous negative divergence in the oscillators. Gold as we know does not by itself appreciate in value.The rise in value of gold is relative to other factors. As of now the rise is due to a weak USD, renewed sovereign concerns in the European periphery, inflation pressures and rises in oil prices.Till this scenario does not ease, gold will be in demand.

Technically, 1307, the last swing low on monthly charts, should be a good support and stop loss for longs.A buy on dips strategy will pay off well over the next three to five years.Just the reason why I have analysed only the monthly charts.

More insight about the fundamentals of Gold can be read in the post by Nishit Wadhavkar here http://money-manthan.blogspot.com/2011/04/gold-whats-driving-it-fundamental-and.html .   Nishit is a long term Gold Bull  and  his faith in Gold remains unmoved in every correction and he has got it rite so far with a 56% return on his gold investments.


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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P 500 update --15th April 2011

Daily Chart

A potential double top with the confirmation on the break of 1249. Supports at 1302-1294-1284.




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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty - 15th April 2011

 Weekly Chart

Putting up the weekly chart as just a day's trading left for the weekly close. A close above 5915 will be a breakout from the down trending line. The weekly candle also seems to be forming a bullish engulfing candle unless there is a good sell off tomorrow.

 Daily Chart

The huge bullish candle from green trendline support encourages the view that the weekly charts may see the breakout from the down trendline. Volumes on the correction from 5944 to 5735 was very low which indicates low selling pressure.On the other hand volumes on the bullish candle of 13th was much higher, which is bullish. The correction  from 5944 to 5735 which took 4 days was retraced 90% in just a day's session. All pointers have a  bullish bias.

A higher high seems to be in place. Place stops at 5735 and trade long.

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning the Bank Nifty - 15th April 2011

 Daily Chart

The range of 11898-11540 was violated on the downside but bears could not take advantage of it. On the other hand the bulls took advantge of the correction to post a huge bullish candle erasing almost the entire loss. The resistance of 11898 -11912 needs to be crossed to  break the neckline of the bullish head and shoulder shown below. The move could be a whopping 1900 points!!!!



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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com

Force of Habit

Couldn't stop myself posting this

Weekly Nifty Chart

Doji with a long upper shadow at strong trendline resistance. This could mean a reversal as it has the charateristics of a shooting star.

Time to leave see you'll on Friday .



follow me on twitter http://twitter.com/#!/lucksr

Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com