Market Commentary

Ø  August gold was lower overnight as it consolidates some of the short covering rally off June’s low. Stochastics and the RSI are neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 1310.70 are needed to confirm that a short-term low has been posted. If August renews the decline off June’s high, monthly support crossing  at 1155.60 is the next downside target. First resistance is the 10-day moving average crossing at 1250.00. Second resistance is the 20-day moving average crossing at 1310.70. First support is June’s low crossing at 1179.40. Second support is monthly support crossing at 1155.60.

Ø   September silver was lower overnight as it consolidates some of the rebound off June’s low. Stochastics and the RSI are neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 20.481 are needed to confirm that a low has been posted. If September renews this year’s decline, monthly support crossing at 17.080 is the next downside target. First resistance is the 20-day moving average crossing at 20.481. Second resistance is the reaction high crossing at 22.525. First support is June’s low crossing at 18.170. Second support is monthly support crossing at 17.080.

Technical levels for 9th July, 2013:

Source: www.rsbl.co.in