Gold and Silver hit the new high today.

Today was day of big moves. Many stocks and commodities hit their third and final levels. Final level of the Gold is 52013 and glittering commodity hit the price of 52186 at the time of reporting. Levels were mentioned in last post with title Support and resistances of Indian stocks and commodities listed at NSE BSE and MCX Final target of Silver is 64941 and by now shining silver has made the high of 64999. Make or break point for Silver is 67200. Let’s see shining commodity approach it or not? If yes! Breach it or not? If yes! What would be the next level? Time will unfold the facts. Right now, this commodity is participating with Gold now. Both the bullion’s are competing with each other. When bullion market was moving northward, Bank Nifty covering top 12 banks of India tanked to 21969, its final support. At the day close Bank Nifty was even lower than the third level by 120 points: 21848. ICICI Bank attracted heavy selling and dropped the most, corrected by almost 6% plus in daytrading only. ICICI Bank also achieved its third support of 359. Other banks were also under selling pressure and registered losses near to 2 to 3%. IT stocks and metals somewhat saved the day from big fall. Nifty 50 was down by 62 points, whereas Bank Nifty was down by more than 800 points. HCL Tech, Infosys, TCS, Tech Mahindra were among the top gainers.

Asian Paints surprised by registering gains of 3.53%. Asian Paints formed “hammer” on July 16 and moved up to 1770 in 3 days and on July 21 formed the pattern of “bearish engulfing” and dropped to 1685. Again on July 23 there was a formation of “bullish engulfing” and next day again on 24 formed pattern of “hammer” and today moved up in a big was by 3.5%. Today at what point buy should have been triggered? Once the price breached the top of the hammer go long with stop below the low of the body. Learning candlestick is also very important because different patterns give traders the sense of price behavior. Either price is in a trend or sideways. Basic strength of studying candlestick is to judge the power of bulls and bears and to identify the reversal points. Look at the chart:-

Quote of the day:-

Motivational Finance Quote: Although it’s easy to forget sometimes, a share is not a lottery ticket. it’s part-ownership of a business. – Peter Lynch