GOLD IN $ TERMS
Gold closed at $1320.60
on 4-7-14
Range for the week
ended on 4-7-14 was:-$1334.90---1309.40.
SUPPORT:-1305.40/ 1287 / 1277.40 / 1268.40 / 1258.
RESISTANCE:-
1331.40 / 1334.90 / 1355 / 1361.80 / 1377 / 1392.60
In the month of June-14 gold had
a wild swing and it made a low of 1240.20 and a high of 1330.40 before closing
the month at 1322 near the high point. In the week ended on 4-7-14 it moved in 25 point
range and closed the week near the mid -point of the range .The movement seems to
range bound as of now.
TECHNICAL OBSERVATION :-
1. 1.It
is below its short term moving averages now which is at 1327 for 7-7-14,but It
is still above its all long term moving averages except
for one which is at 1322, it crossed this average number of times in the month
of June-14 but could not sustain above this, if it stays above this then a
reasonable up move is expected. The range of important moving averages are between 1322---1275.The strong up
move can only be expected if it crosses 1322-1330.40 range and stays otherwise it will remain in a short
trading range with a downward bias.
2. 2. The technical
parameters showed positive
divergence(see my last post) but now
negative divergence has re-surfaced on the daily chart and it can only be negated if it stays above its long and
short term average point of 1322 &
1327 ,therefore as of now the strong support for it exist at 1302 , avoid long
calls below 1302.
3. 3. Technically
the trend looks steady and
range bound with an downward bias as long as it does not cross the point of
1322 & 1327 and stays above this..
REMARKS:- I
would suggest to wait and watch and take long call only if it starts trading
above 1327 only, otherwise it may slip down from here . I suggest to avoid long
calls completely below 1302.
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Thank you for sharing your views.