GOLD MAY BE HEADING TO BREAK $1000 MARK IN COMING MONTHS.

GOLD IN $ TERMS

Gold closed at $1171.60 on 31-10-14

SUPPORT:- 1155.60 / 1124.30 / 1084 / 1075 / 1044.50 / 1026.90 / 991.67 / 983.

RESISTANCE:- 1179.40 / 1181.40 / 1183.30 / 1202.30 / 1204.50 / 1230.80 / 1240.20 / 1255.60.

I still hold the same view (see my post of 9^th Sept-2014) Gold looks hugely bearish on the technical chart therefore it is advisable to stay away from investing in it for long term because it may not even give you normal return which equity can give in at least two to three year’s time period, so avoid this asset class for long term investment and prefer equity instead .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 both on daily and weekly chart and also making lower tops and  bottoms consistently which is devastating ,furthermore it has also broken major bottom of 1179.40 it made on 28.6.2013 which indicate further fall  is in the offing and other technical parameter also suggest that it may break $1000 mark in coming months , Since it is very close to its support area of 1160.50 & 1155.60  so it may give a technical bounce back from here, but as it has broken the major bottom of 1179.40 therefore I would suggest that those who want to take long call to play the expected pull back should only go long if it stays above 1179.40 with a stop loss of close below 1175 or aggressive trade can try long call here also with a stop loss of close below 1160.Technically long call should be avoided below 1160 for sure for the entire month of Nov-2014,so the range for trader now is between 1179.40—1160. Going up it will face very stiff resistance at 1179.40 / 1202.30 &1204.50. If it moves above 1204.50 then stop loss for long trade should be elevated to 1195.  

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 level) with an adequate stop loss. Since the trend is down I would prefer to sell on the rise rather than to take a buy call.

Contact me for strategic guidance to enter and exit the trade