GOLD IN $ TERMS (SHORT UP-MOVE MAY BE IN SIGHT)-14-12-14

   GOLD IN $ TERMS

Gold closed at $1222.50 on 12-12-14

SUPPORT:- 1204.5 / 1202.30 / 1186.40 / 1183.30 / 1181.40 / 1179.40 /1173.90 / 1160 /  1155.60 / 1130.40.

RESISTANCE:- 1238.90 / 1255.60 / 1297.60 / 1324.30.

Gold is still in long term down trend but off late movement in it has become highly volatile may be because of uncertain event concerning different aspects of  global economy  from time to time and it seems to continue, so volatility is expected to remain . Technically it is still tremendously weak but it seems to be consolidating here and may give an up-move in coming days but I suggest that the long term investment in it should be avoided.

TECHNICAL  OBSERVATION

Now it is oscillating within the range of short term moving averages and the range for it is between 1186—1238, but it is below its long term moving average range which is between 1239—1279,therefore the broad range for it is between 1186---1279,If it moves above 1239 and stays and finally crosses 1279 then reasonable to good rise is expected   similarly if it breaks 1186 level and stay then it will start moving down again .Since it is consolidating  and near the lower band of the broad range average and other technical parameter are also showing some sign of improvement and indicating that a up rally may be in sight ,so the short call should be avoided till it breaks 1186 instead long call can be  tried on the dip or near 1186-1195 with a stop loss of below 1184.

REMARKS:-Long term trend is down but since it is consolidating and some technical indicator also pointing that it may give a short to reasonable up rally in coming days therefore avoid short call for now and try long call on dip at appropriate level and with proper stop loss. Avoid long call below 1186 for sure.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market

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