IFN India Fund Weekly Chart Downward Channel Lower Lows Lower Highs

India is an important proxy for gold price since India consumes one-third of the world's gold supply. As we go into the Indian marriage season, typically a strong seasonal time for gold, the chart shows that India had topped the end of last year, so this year will have a light twist. Last year the wine was flowing as markets rocked higher on Chairman Bernanke's QE2 booze, but this year, the punch bowl is empty. Thus, watch to see if gold price is effected by melancholy Indian markets this year.

Of additional concern is that the recent demonstrations, against the Indian corruption that exists at all levels of government, will get out of hand. For now, the demonstrations are only impacting the major cities; rural areas remaining unaffected. This unrest and negative vibe, however, creates a negative outlook for India moving forward.

Note the downward channel in place from the November 2011 top; lower lows and lower highs shown by the red dots. IFN finally worked down into the horizontal blue channel at 25-29 which helps IFN attempt to establish a bottom area over the coming months. Note the histogram and stochastics want to see price bounce now (green lines), but the RSI, MACD and money flow (red lines) want to see lower and lower price for the months ahead. Thus, the 25 lower rail support will probably not hold as time moves along. Look at the juicy gap at 21-23, another at 19, that will require filling.

Projection is for price to try and hold the 25 support but it will ultimately fail which targets the 21 area for the months ahead. At the same time, a weaker Indian market has to considered in relation to its effect on contribuiting to a lower gold price moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.