Buy the stock of Goldcorp Inc. (USA) (NYSE:GG) with the Target of $38

Goldcorp Inc. (USA) (NYSE:GG) (Closed at $23.51, Up 1.25%) is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico and Central and South America. The stock of Goldcorp Inc. (USA) is been consolidating within the wide range of $20 and $30 from almost one year. The company pays dividends to its shareholders every month and is doing it consistently from the past so many years. The stock is in long term correction phase in which pullbacks are always seen and some strong ones when stock goes oversold.

Technically speaking the price charts of Goldcorp Inc. Has formed an inverse head and shoulders which is a bullish pattern. The stock broke out of the pattern in the month of June this year and is now retraced to the area of right shoulder taking some support near $22.5 and bouncing with volumes. During the breakout, the volumes were increased which shows the buying interest in the stock and from then the trend of the volumes is increasing. There is positive crossover of 50 and 200 SMA in the price chart which means the stock is in buying zone. The positive crossover in MACD adds to the buying momentum.

Currently, the stock can be bought near its market prices with the strong supports of 20$ as their stop losses. The targets of $38 can be expected over a period of 4-5 months. Investors can hold this stock with medium term perspective.

 

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Maintain bullish stance on Gold US Dollar for the time being

Gold US dollar closed at $1223.05 rising $32.30 this week. The commodity fell 9 out of last 12 weeks of trading but now has bounced back heavily from the important support levels of $1180 in the 13th week. Gold prices were under pressure from quite some time as the fundamentals were not strong in the recent past and demand being the concern for the drop in prices. But now the situation seems to settle for a while as the demand from Asian countries especially India where Gold is the attraction to the consumers during festive season is expected to surge as is always seen in the past years.

Technically, the price charts of Gold US dollar are trying to convey the message of positive reversal in the prices of the commodity with formation of bullish engulfing on weekly charts. The commodity has bounced third time from the crucial support levels of $1180 and we all know the importance of number 3 in technical analysis. It is in the formation of symmetrical triangle from more than one year the 5th wave of which has not yet completed and is now in progress. This wave is likely to end near the falling trend line resistance of $1325 to $1330 which are expected to accomplish in the coming 2-3 months. The rising Parabolic SAR in daily charts is signalling uptrend to follow in the commodity. Moreover, positive crossover of 8 and 30 EMA (Exponential Moving average) also signals buying on 4 hourly charts which can be assumed to be the first signs of the positive reversal in the commodity. Elliot wave oscillator also shows positive divergence on daily price charts of Gold US dollar.

From all the above explanation, it can be concluded that buying is recommended in the commodity for the coming 2-3 months which targets $1325. The stop losses of $1180 would be advised to maintain in all buy positions.

 

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Time for Bulls to be Cautious in Dow Jones Industrial Average (INDEXDJX:.DJI)

Dow Jones Industrial Average (INDEXDJX:.DJI) (Closed at 16659.25, Down 1.97%) is the stock market index of 30 large public companies based in the United States which fluctuates accordingly the price movement of these companies. The index opened negative which was its daily high of 16989.37 and traded with negative momentum the whole day and closed the day near its lows. The lows of 16649.05 which were made during the day are very close to the rising trend line supports near 16630.  

In the context of Technical analysis, the index has formed a rising wedge pattern on weekly charts which started from the week ended 11th October 2013. The trend line formed by joining the lows of week ended 11th October 2013 and 13th August 2014 gives the support 16630 to the index. During the formation of rising wedge the volumes were declining and now when the 5 waves of the pattern has formed and the corrective wave have started it has gained the volumes which suggests strength in bears. Moreover it also meets the criteria of Elliot wave rules where 3rd wave will never be the shortest. Wave 1 is the longest and Wave 5 the shortest. Wave 4 entered the territory of Wave 1 which also adds to the characteristics of the wedge (ending diagonal). These kinds of patterns generally are seen near the end of bull market. The volumes as well as the volatility is rising signifying the people’s rising interest in the markets where smart money is disposing off its buying positions to the unknown investors. There were elongated negative divergences during these periods and indicators like RSI which reads at 40.78 on daily charts also don’t suggest the bull trend to continue.

Now, the only thing which will confirm the bulls are taking a sleep for the coming months or so will be the break below 16630 and this will add to, if it closes on weekly basis.


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Agressive Bulls Target McNally Bharat Engineering

The stock has been consolidating in the range of 82 and 103 from almost 3 months and has now broken out on the upside. From medium term prespective, flag formation has come into picture (targeting 130-135) which is a bullish pattern and we see it near the end of the bull rally in the price chart. From long term prespective, the stock has formed a cup and handle formation which is also a bullish signal and targets 130-135 areas.

On the basis of Elliot wave counts, the stock is in Wave 5 of primary Wave I, also suggesting the end of rally near 130-135 levels. The reason being Wave 1 & 5 tends towards equality when Wave 3 is extended which in this case is. Buying this stock would be a good option for short to medium term with the stop losses below 90.

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Disclaimer: The views and recommendations presented here are our personal views. Investing or trading is very risky activity. We are not liable of any losses made from this information. One should be cautious and should conduct his own research before using this information. One should not use this information for publishing their blog or website. Legal action will be taken against the person using this information for publishing their blog or website.
 

Time to Call Medium Term Bottom for MCX SILVER

MCX GOLD (Closed at 41933, Down 0.14%) has recently taken the support near 61.8% retracement of the up move from 39465 to 46400. Further more, the zone of 41700 and 42500 was the strong support zone. Prices have started rising and gaining buying momentum. Even the formation of higher tops and higher bottoms comes into picture on smaller time frames.

Technically, the commodity might retrace 50-61.8% of its previous fall from 46400 to 41780 and target 44000 to 44600 zone. The down trend is losing its catch and giving bulls the hold on the white metal. It may be too early to call it a intermediate term bottom but is is definitely a short term bottom and further if markets close above 44800 which is a major resistance zone, the bottom of 41780 might hold for intermediate term.

Buying can be initiated near 42300-42400 with SL below 41750 for the targets of 44000 and 44600. The traders who have short positions in the commodity, it is the time for them to be cautious and use strict Stop Losses.

Disclaimer: The views and recommendations presented here are our personal views. Investing or trading is very risky activity. We are not liable of any losses made from this information. One should be cautious and should conduct his own research before using this information. One should not use this information for publishing their blog or website. Legal action will be taken against the person using this information for publishing their blog or website.

MCX GOLD Prices Poised for a Recovery till 28400

MCX GOLD (Closed at 27895, Up 0.45%) has recently taken the support near its previous rising bottom of 27587. The commodity has not managed to break the level of 27700 and has shown recovery till the 23.6% retracement of the previous downmove. Till now, prices have retraced only 23.6% and it is expected that these may even retrace till 28400 which is a 50% retracement of the previous fall in MCX Gold prices.

In international markets, gold saw a sharp rise yesterday which indicates that it might retrace its previous move in the coming trading sessions. Gold prices may retrace at least 50% of the previous fall of almost $50 from $1322 to $1272 and $1300 may be seen in coming days.

Fundamentally, the US economy have performed well in the recent past which is shown by its economic numbers. But the numbers which are scheduled for its release this week may surprise the market participants and the weak data may result in the price boost in commodities.

Disclaimer: The views and recommendations presented here are our personal views. Investing or trading is very risky activity. We are not liable of any losses made from this information. One should be cautious and should conduct his own research before using this information. One should not use this information for publishing their blog or website. Legal action will be taken against the person using this information for publishing their blog or website.

Natural Gas: Is It Going To Fall (Pre-Inventory Update)

Natural Gas has been clearly in consolidation for the past one week trading in the wide range of 270 and 284. Natural Gas is currently forming a descending triangle on hourly charts. And even a kind of head shoulders pattern is also visible on the charts. 

Natural Gas is trading near the current support areas of 273 which if broken and sustains below it for at least 1 hour then fall of almost 12 points can be seen. Furthermore, the commodity is trading with negative crossover of 8 and 39 EMA which adds to bearish stance on the commodity.

But if markets saw recovery from these levels then the current resistance is near 276.50 levels. The break of 276.50 can even bring 10-12 points rally in this commodity. 

So one can position itself in this commodity accordingly and must maintain their stop losses on either side. 

Disclaimer: The views and recommendations presented here are our personal views. Investing or trading is very risky activity. We are not liable of any losses made from this information. One should be cautious and should conduct his own research before using this information. One should not use this information for publishing their blog or website. Legal action will be taken against the person using this information for publishing their blog or website.