GOLD IN LONG TERM BEARISH TREND

     

GOLD IN $ TERMS

Gold closed at $1254.30 on 8-9-14

SUPPORT:-1240 / 1230 / 1204.5 / 1202.30 / 1181.40 / 1179.40 / 1155.60.

RESISTANCE:- 1276 /1279.20 / 1297.60 / 1325.90 / 1331.40 / 1334.90 / 1346.80.

Gold looks hugely bearish on the technical chart therefore it is advisable to stay away from investing in it for long term now because it may not even give you normal return which equity can give in at least two years time period, so avoid this asset class for long term investment .However in between up rally could be there so trader can take advantage both ways at appropriate levels. Gold and Silver is identically placed on the chart. 

TECHNICAL  OBSERVATION  

It is way below its short term as  well as long term moving averages and also making lower tops and bottoms which is showing gross weakness but Since it is very close to its bottom of 1240 & 1230 so it may give a technical bounce back from here and going up the range of 1276—1325 will pose a very stiff resistance. If it breaks 1240 & 1230 and stays then it may go in for deeper fall and may test or break the level of 1179 ,the  chance of which are looking  very bright in near future. .  

REMARKS:-Long term trend is down therefore I would suggest to avoid investment in gold for sure. Traders can take long and short call both at appropriate levels(see support and resistance) with an adequate stop loss. Since the trend is down I would prefer to sell on the rise rather then to take a buy call.

Contact me for strategic guidance to enter and exit the trade