Trading the base metals

 Base Metal trading guide for 29th August, 2012

For Base metal traders I give below the pivot points that could be used for intraday trading. A point to note is Zincmini is still in the bullish zone. MACD, T3 and Stochastic are in the green. There is a rise in volume too, but since the month is ending there could be some changes in the volume. The Leadmini too in the bullish zone. All major indicators are backing it. Only the SMI indicates that it is approaching overbought zone. 

The spread gap has also increased to 6.55. Traders who have entered a bear spread can consider booking profit.

                    R2             R1           Pivot       S1           S2

Leadmini    109.98       109.55     109.12     108.88    108.63

Zincmini     103.38       103.10     102.82     102.60    102.38

While the Zincmini may travel up, the Leadmini can meet some resistance. Traders should take note of this.

Happy trading!

Trading Nifty

Today I give below the Nifty chart for the current month

 Nifty is on the decline. It is now in the weaker zone. the MACD had crossed and given out a sell signal.T3 has also gives a sell call. The SMI has clearly indicated a down trend. Although heavy volume backed downing of Nifty index we can say this is a short term trend. the Long term and medium term trends still remain on the upper side. 

What to expect from here can be judged by the pivots points today's trade has given us.

Pivot levels for            28th August 2012

Mid R3    5394            R3            5405

Mid R2    5370            R2            5382

Mid R1    5347            R1            5358

Pivot        5335

Mid S1     5324            S1            5312

MID S2    5300            S2            5289

Mid S3     5277            S3            5265

 From the above chart we find the pivot point of 5335 is the important level Nifty should be hovering around. 5358 the level it has reached today remains the resistance. If this is broken we can expect the Nifty to touch 5370 and 5382. But the weak Nifty is unlikely to do this. On the contrary if levels like 5312 are broken will see Nifty touching 5300 and even further down.

For Fibonacci traders I give below the Fibonacci pivot points

Pivot        5335

R3            5382            S1            5318

R2            5364            S2            5307

R1            5353            S3            5289

Trading levels for Leadmini and Zincmini for the day 28the August, 2012

In my last post the values that I mentioned has been largely met.Still there is some more room left for these base metals to travel. Since these levels have reached overbought  zone profit booking may come at any time. Traders should be very careful.

I give below the Pivot levels for Leadmini and Zincmini.


                          R1        R2              Pivot              S1         S2

Leadmini       109.83    109.53      109.22           108.83     108.43

Zincmini        103.60    103.40      103.20            102.85     102.50

The spread gap between these metals now stands at 6.15 giving us a good profit.

Happy trading!

Today's Nifty performance and trade ideas for 28th of August,2012

Today the Nifty opened at 5387 but could not make any significant move beyond 5399. It made a low of 5346 and has closed at 5350. the major world indices were also not doing well. As I mentioned in my previous post the Mondays performance was important, for the Nifty to make any new trend. So what is going to happen from this point onwards.

The pivot point stands at 5365. the Mid R1 which I used to always mentioned is 5375. Nifty can meet resistance at 5384. If it successfully clears this resistance then levels 5401 and 5418 are the levels to watch for. 

On the down side, support can be found at 5348 and 5332. If Nifty becomes weaker even lower levels are possible.

The major stocks that can lift Nifty upwards are not looking strong.Therefore, we can expect a weaker opening and see Nifty trying its best to travel upwards.

For Fibonacci fans i give below the pivots based on Fibonacci system 

Pivot        5365                                                         

                                                                                            

R3            5418            S1            5345          

R2            5398            S2            5333          

R1            5385            S3            5313          

                                                                                       

The above pivot levels are based on Fibonacci method

Happy trading

Trading Zincmini and Leadmini

For the benefit of Leadmini and Zincmini traders I thought of publishing the following charts which could be quite useful. 

CHART OF ZINCMINI FOR THE MONTH OF AUGUST.

 

From the above chart we can observe that Zincmini is on the up move. However the general trend of the Zincmini seems to on the downtrend for the last 4 months. On the 24^th  it has seen a big up move and has crossed 50 days average which has not happened since July. It has also touched the upper limit of Bollinger band. The MACD and the SMI suggest that the price can move little bit more nearing 104 levels. After which profit booking may bring the price down. So a cautious approach should is made.  

CHART OF LEADMINI FOR THE MONTH OF AUGUST.

 

 

The above chart is also somewhat similar to Zincmini (as the price movement tends to move on similar line). We can notice there had been an up move in the price on the 24^th  The MACD and the SMI indicates the price may move upwards surpassing 106 levels. Leadmini has been showing a slight up trend in the last few days and reached the upper Bollinger band.  There can be selloff in the coming week, due to profit booking. 

The spread gap is also increasing for Leadmini and Zincmini which now stands at 5.75 The traders who might have entered Bear spread in the beginning of this month will see some profits now. 

For intraday traders the pivot levels are as follows.

	R2	R1	Pivot	S1	S2
Leadmini	109.40	108.68	107.95	107.55	107.15
Zincmini	104.07	103.25	102.43	101.83	101.22

Happy trading