An Insight on Commodity Market Trading

Commodity Market Trading

There are many people who want to excel in the Stock Market as well as commodity market trading. The trading on Stock Market is done through BSE and NSE in India and commodity trading is done through MCX and NCDEX. In commodity market trading is done on major commodities like Gold, Silver and Natural Gas. Due to the impact of international market and changes in conditions, the prices of these commodities fluctuate continuously.

One can trade in the commodity market as intraday trading, short-term trading or for the long term. Basically, the trading in the commodity market can be done in the following three formats:

  • Intraday Trading
  • Short-Term Trading
  • Long-Term Trading

Intraday Trading

In the MCX commodity Intraday trading, the commodities are bought and sold on the same day. The time frame of intraday trading is 1 day. If the commodities are bought at a higher price and sold at a lower price, a loss is incurred. On the other hand, if the commodities are bought at a lower price and sold at a higher price a profit is incurred.

The key rule to become profitable is to buy low and sell high. There is continuous fluctuation in the price of commodities during the day. One has to find the minimum during the day and buy at this level. One also has to depict the high and sell at this level to get maximum profit.

Short-Term Trading

Commodity Market Trading

Apart from the intraday trading, there are options of Short-Term Trading as well as Long Term Trading in front of commodity traders. In the short term trading, the commodity is bought and kept for some time. After some time if the price of the commodity increases one can sell the commodity and lock the profit. In the short term trading, the period of trading ranges from few days to months. The short-term trading is also known as swing trading by many experts.

Long-Term Trading

The third option to trade in the commodity segment is to do long-term trading. In the long term trading, the trader or investor buys a commodity and keeps it for the long term. With the time, the price of the commodities increases and one can bag good profit by selling them. In the long term investment, people buy and keep the commodities like gold and silver. One can see that the price of gold has increased a lot during the past many years. Thus, if anyone would have invested in gold 8 to 10 years ago, he must have amassed huge profit.

Whatever may be the type of trading, one should always use stop loss while trading. The stop-loss tool will help you to avoid huge losses. Based on once risk appetite one can decide the stop loss levels. The stop loss levels should be neither too wide nor too small.

The principles of risk management and wealth management should be followed to trade profitably in both the stock market as well as a commodity market. One can also take the help of advisory firms while trading in the commodity market.

 

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Commodity Market Trading There are many people who want to excel in the Stock Market as well as commodity market trading. The trading on Stock Market is done through BSE and NSE in India and commodity trading is done through MCX and NCDEX. In commodity market trading is done on major commodities like Gold, Silver …

Intraday Levels and Trend for Gold in the International Markets

Gold trend intraday levels is a special kind of commodity, Gold International Markets extensively on a worldwide. The precious metals like Gold and Silver are also known as Bullions. When we talk about Gold commodity, it has its own Ticker, a contract value and a margin value. To trade effectively in the Gold market you should first try to understand how the commodity market or gold market works. One must try to understand the factors, which are responsible for price fluctuations in this commodity. The trend for Gold in the International Markets read about it below.

Technical analysis is an important factor in anticipating the future price movement of the Gold Commodity. When the technical analysis is combining with fundamental analysis, it renders even better results. In the Technical analysis, the charts of various timeframes are plots against the price of Gold. Also, the support and resistance levels are identified by drawing trend lines.

The support is the level where the price touches many times and bounces up after touching these levels. The resistances are the levels from where the price touches many times and bounce below these levels.

GOLD TREND  INTRADAY LEVELS

gold trend intraday levels Gold International Markets

Here we are providing the current information for 10th Aug 2018. The current market price or CMP of gold is 29668. Therefore in the medium-long term, the overall trend of gold is bearish. Also, the price of gold is continuously going down. In the current scenario, the commodity gold prices are moving sideways. Presently trend for Gold is trading in the overbought level. The oscillator indicators are providing buy signals as it is recovering from the oversold regions.

As we have seen, the volatility in gold is very less. One can buy Gold above 30108 or one can buy at 29252 with strict stop loss.
Due to this, we consider the short-term scenario the Gold is in HOLD SHORT position. The positional support for the commodity gold is at the level of 29507. The resistance for the gold is at the levels of 29827-30013-30472-30765-30856.

A trend for Gold in the International Markets-

Currently, the Gold is in Hold-Long Position and the Gold commodity is moving sideways so for a short-term investor it is better to buy if gold closes above 29760. For closing below the levels of 29528, we must go for sale. The oscillator here will show sell signal.

Intraday Trend: It is advised to buy above the levels of 29809.1 and a stop loss as 29567.9.
It is also recommended to sell below the levels of 29527.2 with a stop loss at the level of 29768.2
The Intraday-Resistance Levels of gold are in the sequence 29749.6: 29817.4: 29926.9: 29962.9
The Intraday-Support Levels of GOLD are in the sequence 29586.4: 29518.6: 29410.2: 29374.5

Thus, we have provided a detail technical analysis of the Gold under the current scenario. One can follow these support and resistance levels and can trade accordingly. For the intraday trading, multiple support and resistance levels are specified. One can plan his/her trade based on the levels reached. It is caution here that one should trade with a strict stop loss as trading in the Gold Commodity.

 

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Gold trend intraday levels is a special kind of commodity, Gold International Markets extensively on a worldwide. The precious metals like Gold and Silver are also known as Bullions. When we talk about Gold commodity, it has its own Ticker, a contract value and a margin value. To trade effectively in the Gold market you …