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Showing posts from 2012

Do not buy Gold yet | Technical Chart | 27-Dec-2012

Below is the technical chart of Gold, using Doda-Donchian and Doda-Bollinger indicators. I've also added Kumo component from Ichimoku indicator.

Gold is in downtrend from the last so many trading sessions. It tried to cross Kumo - the main resistance around 11-Dec-2012, but failed to do so. It started its another bear run from there. At the time of writing this article, Gold is trading around $1657.
For this week, Gold needs to cross and close above $1665.17. You can buy Gold at that level but not before that.
On the downside, $1627 and $1597 are the strong support levels.
And  on the upside, 1694 and 1732 are the major resistance levels after 1665.
Take your positions accordingly.

EURUSD Technical Chart | 18-Dec-2012

Now, let us take the technical chart of EURUSD with Doda-Donchian, Doda-Bollinger and Ichimoku indicators.

EURUSD is in bull run from the last many trading sessions. Currently, it is trading around 1.3166. 
Now, looking at its technical chart, the major level to watch for this week is 1.3080. As long as it is trading above this level, take only long positions.
1.3038 is the strong support and on the upside, 1.3295 is the strong resistance.
So, for today, avoid any short positions and do not miss any long positions.

Nasdaq 100 Technical chart | 18-Dec-2012

Let us discuss the technical chart of Nasdaq 100.

The main level to watch for Nasdaq is 2647.26. As long as Nasdaq is trading above this level, do not miss any long position. 2660 is also a good support for Nasdaq.
If it closes below 2647.26, book your profits and exit. You can take short position also there. 
On the upside, 2679.53 and 2727.96 are key resistance levels. Watch them carefully.

Silver Technical Chart | 18-Dec-2012

Below is the technical chart of Silver using Ichimoku and some other useful indicators.

I've taken one day time frame to get bigger picture of technical analysis.

Silver is in downtrend from the last many trading sessions. The main level to watch for this week is $32.66. It needs to close above this level to enter bull zone. Below this level, it's weak.
On daily chart, it manages to get support at the bottom of kumo (see chart above). So, Kumo is acting as strong support for silver.
But let it close above $32.66 to take long position.

Gold Technical Chart | 18-Dec-2012

Below is the technical chart of Gold, using Doda-Donchian, Doda-Bollinger and Ichimoku.

This week main level to consider is $1701.25. If Gold trade above this level, do not miss any long position and if it trades below $1701.25, take only short positions.
At the time of writing this article, Gold is trading around $1702.16. Just slightly above $1701.25. It needs to cross the resistance of kumo viz. @1706. Above that, it will start its bull run.
On the downside, $1679.11, $1666.66 and $1644.54 are the key support levels of the week.
On the upside, $1713.68, $1735.82 and $1748.25 are the key resistance levels.

Gold technical Chart | 13-Dec-2012

Below is the technical chart of Gold, using Doda-Donchian and Ichimoku indicator.

Yesterday, Gold closes below $1703.88 level, which was its major support level of the week. Below this level, Gold is weak and only short-selling calls should be taken. $1696 is the minor support. Breaking it, next target is $1685.39.
Do not take any long position till Gold crosses the major resistance area of $1703-$1708.

Gold Technical Chart | 10-Dec-2012

Below is the technical chart of Gold, using Ichimoku and Doda-Donchian indicator.

Gold is currently trading near $17053.93. If it manages to stay here, it will begin its bull run of the week from here. It's main resistance for the week is $1705.47. Above this level, buy Gold. Below this level, do short selling.
On the downside, 1703.71 to 1704.75 is the support band and $1685 has become major support level of the month.
On the upside, watch the level of $1720 for some resistance.

Gold Technical chart | 28-Nov-2012

Below is the snapshot and description on technical chart of Gold using Doda-Donchain, Ichimoku indicators.

The beginning of this week saw bullish trend in Gold, when it started trading above $1741. But just few hrs. back, it closed below $1741 and has now entered bearish phase. So, cut all your long positions in Gold. Buy it only when it closes above $1741.29.
Support levels: 1737.58 and 1728.36
Resistance :1741.29

Gold Technical Chart | 23-Nov-2012

Just now when I started writing this article, Gold gave a Buy signal. It's currently trading around $1731 after crossing the resistance of 1730.15. Just take long position here with the stop-loss of $1729.02. 

Do not miss any buy signal till Gold is trading above $1721.67 and ignore every short-selling signal.

 Here is the technical chart for your ref.

Gold Trading Strategy for 21-Nov-2012

Yesterday, Gold managed to cross its weekly pivot point of $1721.67 and we witnessed a good rally thereafter. However, it could not crossed its resistance of $1738. Currently, it is trading around $1724. 

Take your long position when it closes above $1728.85 with a stop-loss of $1721.67.
Target 1: $1738.60
Target 2: $1754.83

Gold Technical Chart | 05-Nov-2012

Gold is in downtrend from the last so many sessions. Currently, it is trading around $1678. For this weak, the buy signal will come only above $1693. Below it, do not miss any sell signal.
Support level: $1674.47

If it breaks $1674, we will see sharp correction.

Indian Rupee: Volatility ahead by Anindya Banerjee, Currency Analyst, Kotak Securities

The correlation of the Indian Rupee to the currencies of developing economies has always been extremely rocky and the start of this can be attributed to the era post the Prussian War or Circa 1870-71. Given the purchasing power disparity between economies trading in gold versus those trading in silver and the demonetization of silver as newer reserves were being discovered, the impact of such a huge rift was profound.
Post Independence, the economic crisis of 1966 and 1991 have attributed to the weakening of the rupee further in global markets. The trade deficits of 1950, resultant inflation and the stopping of foreign aid, the war of 1965 and drought devalued the rupee further. Subsequent liberalisation helped stem the flow till 1991, when India started facing its next wave of Balance of Payment Issues from 1985 – 1990. With imports restricted and high deficit, the rupee was devalued yet again especially by 1999.

Between 2000 – 2007, with high remittances, sustained foreign investment …

Gold trading strategy for today | 24-Oct-2012

Let us discuss the trading strategy in Gold for today. I'll use few indicators, which have already been discussed in Indicators section of this website.

As mentioned in my last article, Gold is weak below $1730. It is currently trading near $1708. So, do not miss any sell signal given by Doda-Donchian below $1730. At the time of writing this article, it has just given sell signal @1709.

$1706.03 is the small support level.
$1690 is the easy visible target and immediate support for Gold as of now.
Make the stop-loss of $1709.70

Gold trading strategy | 23-Oct-2012

Let us discuss the trading strategy in Gold for today. Gold is currently trading near $1722. It's been in downtrend from the last few trading sessions. On the upside, $1730 has become the main resistance level. Do not take any long position till Gold closes above $1730-$1734.  On the daily chart, $1686 - $1690 seems to be very strong support. Till then, continue with your short positions.

Commodity trading guide | 11-Oct-2012

1. Gold: It has bounced back to some extent. But buy signal is only from 1777.40. On the upside, 1790.33 will be resistance and on the downside 1758.99 will be the support.
2. Silver: Take long call only above 34.3033. Resistance is at 34.96
3. Crude: It is in bullish mode. 90.14 is the major support level. If it closes below it, exit and take short position.

Forex Technical Charts explained | 11-Oct-2012

1.  EURUSD: It is still in bearish mode. Take only short positions here. Long positions only above 1.2969
2. USDJPY: It has closed down its major support level of 78.43. So, no long positions here too.
3. AUDUSD: It managed to close above 1.0246. So, take long positions here. 1.0341 and 1.3952 will be resistance here.
4. GBPUSD:  Take only short positions here. It will take some time to give buy signals.

Gold Technical Chart | 09-Oct-2012

Let us discuss the technical chart of Gold on H4 timeframe, using Doda-Donchian indicator.

Gold is currently trading @1779.16. It managed to get support around 1769. Now, it will surely break its resistance of 1781.20 - 1781.92. Take only long position in Gold. Its weekly chart is also bullish. Avoid short-selling here.

Forex Guide for 09-Oct-2012

Below is your guide to forex trading for today using technical analysis with various useful indicators.
1. EURUSD: It is trading around its weekly pivot level of 1.2969. Take only long position above this level. 1.29951-1.29961 is the resistance level. Immediate target on upside is 1.30239.
On the downside, if it closes below 1.2969, avoid taking long positions then. Instead, take only short position. 1.2950 will be support level.
2. EURAUD: It should take support around 1.2659. If it closes below this level, take short position.
3. AUDUSD: From the last few trading sessions, it is trading below its weekly pivot points; currently at 1.0246. Take long position only when it closes above this point. Below this level, don't miss any short call.
4. EURGBP: It is in bullish mode. 0.80728 is the immediate support level. Weekly pivot point is at 0.8033. Don't miss any long position above this level.
5. USDJPY: It has broken support level of 78.43. Now, take only short position. However, if …

Gold Technical Chart | 19-Sept-2012

Below is the technical chart of Gold, using Doda-Donchian, Ichimoku and Doda-Bollinger Bands.

I've used weekly time frame in above chart to look for medium-term trend.
Doda-Donchian indicator gave BUY signal @$1622.24. But that was weak signal as the price was trading below Doda-Bollinger Bands and Ichimoku Kumo. So, it had to cross the tough resistance to say breakout.
Then, it closed above kumo @$1738.42; confirmed by Doda-Bbands. And there it gave bullish breakout. 
It is a clear buy now. Buy Gold even on dips.
Some support levels: 1764.5767, 1755.49

Aroon Oscillator | Description, Calculations, Examples, Download

Aroon oscillator is a expansion of Aroon indicator. It is calculated by subtracting the Aroon Down from the Aroon Up. The resultant number will oscillate between 100 and -100. 

Aroon Oscillator Formula
 Aroon Oscillator = AroonUp - AroonDown.

Trading signals for the Aroon Oscillator:

Above zero signals an up-trend.
Below zero indicates a down-trend.
The farther away Aroon Oscillator is from the zero line, the stronger the trend.
Above 50 is considered a strong uptrending market
Below -50 means that the market is trending lower.
Near 0 means that the market is in transition and not trending.
Above 50 means strong uptrend.
Below 50 means strong downtrend.

A decrease of the Aroon Oscillator from above the 50 line shows that the uptrend is consolidating and is reversing direction downward. When the Aroon Oscillator hovers around the zero line over time, then the market is in a directionless period.
When the oscillator moves toward -50 from the zero line, the market is beginning to trend downward. And …

Gold Weight Conversion Table

This is very useful table to convert Gold into different units as required:

To convert from

Multiply by

Troy ounces

Million ounces

Troy ounces

Troy ounces

Troy ounces




Troy ounces

Troy ounces
Avoirdupois ounces

Troy ounces
Penny weights

Avoirdupois ounces
Troy ounces

Short tonne

Metric tonne

Aroon indicator | Description, Calculations, Examples, Download

The Aroon indicator developed by Tushar Chande, indicates if a price is trending or in range trading. It can also reveal the beginning of a new trend, its strength and also allows you to anticipate changes from trading ranges to trends. AroonDown and the AroonUp indicators are used together and combined are called the Aroon indicator. The Aroon indicator is often used to determine whether a stock is trending or not and how stable the trend is.
AroonUp measures how long it has been since prices have recorded a new high within the specified period. If the current price is higher then the user defined number of periods before it, then the AroonUp value is %100. In other words, it's a new high for that period. If a new low occurred during the period then AroonDown will be zero. Otherwise it returns a percent valve indicating the time since the new high occurred.

AroonDown measures how long it has been since prices have recorded a new low within the specified period. If the c…

List of technical indicators for tutorials

I've decided to start series of articles on technical indicators with their explanation, charts, videos etc. I'll take examples from Forex and/or stock market to explain them.
Following is the list of indicators, which you'll find under tutorials:

Technical indicators starting with A 
Aroon Indicator
Aroon Oscillator
Average Directional Movement Index (ADX)
Average Directional Movement Index Rating (ADXR)
Average True Range (ATR)

Technical indicators starting with B 
Balance of Power
Bollinger Bands
Bollinger Bands - Fibonacci Ratios
Bollinger Bandwidth
Bollinger Percent B

Technical indicators starting with C 
Chaikin’s Volatility
Chande’s Dynamic Momentum Index
Chande’s Momentum Oscillator (CMO)
Chande’s QStick
Chande’s Range Action Verification Index (RAVI)
Chande’s TrendScore
Chande’s Variable Index Dynamic Average (VIDYA)
Chaos Accelerator Oscillator
Chaos Alligator Oscillator
Chaos Awesome Oscillator
Chaos Fractals
Chaos Gator Oscillator
Choppiness Index
Commodity Channel Index (CCI)
Coppock Curv…

Gold weekly technical chart | 17-Aug-2012

Below is the technical chart of Gold, using Ichimoku, Doda-Donchian and Doda-Bollinger Bands indicator.

Gold is currently trading around $1615. For medium term trend, we use weekly chart and for long term, we use monthly chart. Above is the weekly chart.
The price of Gold is trading below kumo, which is a sell signal. It is trading below Doda-Bollinger Bnads - again sell signal. The only positive point is that it is trading above Doda-donchian line. All that means, the technical signals are mixed and are not clear. So, one should avoid trading in Gold as of now.
Now, the question arises, when to buy or short-sell in Gold. The answer is again in the above chart.
If it closes above kumo and Doda-Boolinger bands i.e. 1691.44, buy it. It will again start its bull run from there.
If it breaks its major support level viz. 1524.47, do short selling at that level.

Nasdaq boosts Facebook compensation plan to $62 mln

Nasdaq OMX Group Inc plans to pay out $62 million in cash to firms that lost money in the bungled Facebook Inc initial public offering in May, modifying an earlier plan that drew intense criticism from market makers and other exchanges.

The fund, which Nasdaq said on Friday it would file with regulators, is $22 million larger than originally proposed in June. All accommodations will be paid in cash, a departure from the prior plan in which Nasdaq would have mostly compensated firms through trading credits or rebates.

All payouts are expected to occur within six months.

Market makers lost upward of $200 million due to technical glitches on the IPO when Nasdaq's systems could not handle the massive amount of orders and cancellations ahead of the IPO.

The market makers, which facilitate trades for brokers ensuring smooth market operations, said Nasdaq's original plan fell far short. Some said they were considering legal action.

The original plan also drew the ire of other exchanges, w…

Understanding price charts for effective technical analysis

Technical Analysis for analysing securities and making investment decisions has been one of the most preferred ways of tapping into the pulse of the market. And at the nucleus of this function is the factor of price and price charts that ultimately govern the process of technical analysis.

Price Charts are one of the most efficient ways of tracking and inferring price movements, studying supply and demand, and assessing future trends. A typical price chart is depicted on the X-Y scale wherein the x-axis (horizontal axis) represents the time scale and y-axis (vertical axis) represents the price scale.

Apart from the basic Open-high-low-close chart (also known as OHLC charts) where the opening, highest, lowest and closing price of scrip is taken into account, there are three other ways of charting scrip prices.
1. Line Chart or Close price chart: This is the most basic method of plotting prices, representing only the closing prices over a set period of time on an X-Y graph. This type of gr…