In spite of constant efforts to push lower, attempts were arrested near support of $1714-1717 regions and provided signals of prolonged bullishness. The day’s candle stick pattern too is supportive to extend the upbeat rally. Meanwhile, breaching of the immediate upside hurdle of $1742 would be an initial requirement to prop up the bulls and later on $1755. Hence, for short term we retain our bullish perspective till $1770 as long as $1680, i.e. 100 day moving average, act as a stiff downside obstacle. Unanticipated drop below $1702 will provide chances of corrective selling but trend reversal point is seen only if prices push below the strong support of $1660. In the mean time, selling pressure cannot be ruled out as both RSI and Bollinger Band studies signaling over bought conditions while in volume oscillator market is showing signals of underlying weakness in the commodity.
Gold slid lower yesterday as a sharp drop in the Euro along with profit taking after the metal’s recent rally. However bullion prices headed for their biggest monthly rise since August on lingering concerns over economic growth in US. However investors are closely looking towards the outcome of US NFP data which is scheduled to release on Friday.
Trading Strategy :
- Key levels for the day: Upside Minor 1742/1755 strong 1770/1800
- Downside immediate levels: 1714/1702/1690 Strong supports 1660/1625
- Buy on dips to 1728 target 1740. Buy above 1742 target 1755/1770 followed by 1800
- Buy near 1720 target 1740 with strict SL below 1700
- Buy near 1702 target 1742 SL 1690.
- Sell near 1742 target 1720/1702 SL 1756
- Sell below 1715 target 1702/1690. Confirm selling below 1660 target 1642/1625 SL 1690
- Downside turn around point is at 1660
- Initial attempts for a rise likely to find resistance near 1742, but expect to be cleared and prices move higher towards 1755
- or even more today. Falls below 1714 may call for intraday weakness.
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