BSE METALS touch base

STEEL and ZINC have held on above previous lows. This is the kind of activity we expected after SILVER started giving leadership signals last few trading weeks. Hindustan ZINC the metals major has turned from 0.786 all time FIB and also has witnessed intermediate RSI turning above 40 (SLIDE 1).
The metals complex remains at key inflexion levels and the next few months decisive in terms of the commodity boom and the economic cycle. We feel both Hindustan Zinc and NSTL (NIKKEI Iron and Steel) are good proxies for their underlying metals and are at potential turn around levels.
As anticipated Platinum is also moving sideways (SLIDE 9) and SILVER has failed to push to a new low. SILVER also has a positive momentum setup on both SILVER SPOT INDIA and XAG (SLIDE 7).
Anticipating Gold to keep sideways to negative and rest of the metals sideways to positive is indeed a tough call. But this is what relative performance is all about. Gold is back at key inflexion points of multiple weeks at 830-840 levels. These are not only MINOR FIB projections, but also key conventional resistances. A break at respective levels on a weekly basis can see Gold back at 900.However, we would still need further positive price confirmation to look that far. The overall formation from key primary supports at 720 still looks corrective to us and there is no momentum confirmation too. And above that we have the GOLD CYCLE illustrated in detail in the INTERMARKET CYCLES GLOBAL report, which still points lower. We will take it level by level.
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WAVES.GOLD is a perspective product published on Monday and Wednesday. The report highlights GOLD and other precious and base metals. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.
REUTERS RICS: XAU=, XAG=, XPT=, CU-NYC, .SPGSIZ, SPGSIA, .NSTL
Enjoy the latest WAVES.GOLD
WAVES.GOLD is a perspective product published on Monday and Wednesday. The report highlights GOLD and other precious and base metals. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.
REUTERS RICS: XAU=, XAG=, XPT=, CU-NYC, .SPGSIZ, SPGSIA, .NSTL
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