GOLD IN $ TERMS
Gold closed at $1316.60
on 20-6-14
Range for the week
ended on 20-6-14 was:-$1322.50---1258.
SUPPORT:-1287 /
1272 / 1258.
RESISTANCE:-1322.50
/ 1331.40 / 1355 / 1361.80 / 1377 / 1392.60
Gold after making a low of 1258
moved up sharply during the week and hit a high of 1322.50 before closing the
week near the highest
point , this indicates that there is further room for up move in it.
TECHNICAL OBSERVATION :-
1. It
is almost above its all long term and short term moving averages except
for one which is at 1322, if it starts trading above this then good up move is
expected. The range of important moving averages are between 1322---1272.therefore it
is expected to move in the range and break on either side of the range will
decide up or down move.
2. The technical
parameters are showing
positive divergence and it can only come into play if it remains above 1322 and if it does then it could cross 1331.40 / 1355 / 1361.80 level
in time to come, chances of which are looking reasonably good because it has also given a up -side breakout
during the week on the bar chart after a long time.
3. Technically
the trend looks steady with an upward bias as long as it holds the
moving average range.
MY VIEW:-
I expect the
gold to hold the level of 1287 on the down side and to cross at least 1331.40
level on the up -side and come near
to 1355 point. Those who have long position now can hold on with a stop
loss of 1305, one can add to long position if it starts trading above 1322.50
with a stop loss of 1314 for a target of 1331.40 and 1345.
REMARKS:-Short
term trend is looking up therefore buy on dip strategy is advised for the time
being, buy at the appropriate levels with an adequate stop loss. DO NOT TRADE
WITHOUT STOP LOSS. Kindly note that make your cost your stop loss in favorable
trade and then trail it as the price moves up/down to gain maximum profit and
avoid losses.
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