Gold And Silver Markets in INR

Here we have a weekly chart of Gold measured in INR traded on MCX - Indian Exchange. As you can see Gold is trying to better its earlier top of prices around INR29,000/ gm. This upward thrust lacks volume and momentum and is accompanied by overbought position in Gold.

Notwithstanding the overbought conditions since its a bull market - lack of momentum is the reason why we may see prices correct to 13wema which today stands at roughly 27,600 INR. If we head lower then 25,600 levels will have to be watched.

But since the Gold bull has been too strong - certainly shorting is a BIG NO NO. 

Silver is a market which is a forbidden market right now for trend followers. But its a gift for people who want to accumulate it for future capital gains. Silver right now in INR is at 55,270/kg and is trying to consolidate around this zone where the 3 averages of 8/13/34 wema are converging. Similar to Gold the volume and momentum is missing. But unlike Gold, Silver already is trying to form a base as a consequence of technical damage it had suffered. Hence its the time for accumulation of silver not trading it.