Commodities Tips For The Week 09-May

A lower low and lower high pattern has extended in the last week also and affirms the down trend with a new lower low formation. The price is moving with in a symmetrical triangle amidst with in the flag pattern of a bullish flag.

A successive close below the 38.2% of Fibonacci shall push the price towards the 50% level in near term. The overall trend has been up and the price is expected to move up after testing the trend line support of the broad triangle.

Resistance is pegged at 430 levels and a successive move above the trend line
resistance of the triangle and the flag is positive for the prices.

Trading Strategy: Sell on rise to Rs 410 with a stop loss above Rs 430 targeting Rs 390 and Rs 385.