GOLD IN $-DOLLAR TERMS---A TECHNICAL VIEW----10-5-2015

     

GOLD IN $ TERMS

Gold closed at $1188.90 on 8-5-2015

SUPPORT:- 1184 /  1182 / 1178.20 / 1177.90 / 1168.40 / 1167.30 / 1141.60 / 1130.40 / 1084.80 / 1044.50.

RESISTANCE:-1199.30 / 1210 / 1214.60 / 1219.50 / 1223 / 1224.50 / 1238.90 / 1255.60.

The long term trend is down .It is running below its all short, medium and long term moving averages  and certain short and medium term averages have given negative crossover long ago therefore technically it is very badly placed even in the short and medium term. However since its price movement also depends on the important international events so it may witness volatile and sharp up move from time to time but those move may not be sustainable.

Please note that in last 1,1/2 it is moving in the range of 1225---1168, so breakout on the either side will decide its future price movement, therefore  either side trade can be initiated keeping this range in mind. Furthermore its long term moving average range is placed between 1200—1239 now (it changes every day) and its critical support points are at 1184 & 1130.40, therefore broad range for it is between 1239--1184--1168---1130 and to show good strength and strong up move it has to move above 1239 and sustain for few days, chances of which looks weak at this point of time. Since it is in downtrend, I, personally would not like to go for long call instead, I would look for opportunity to try sell call on the rise at proper points or below 1184 &1168 and below 1130 for sure with proper stop losses. The aggressive day trader can try long call above 1184 or near 1168 with a stop loss of below 1180 & 1164 respectively. The bias is clearly on the downside therefore long call should be handled with extreme caution as  because technically it is clearly sell on the rise market as of now.

 Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARKS:-Long term trend is down. The short and medium term trend also looking weak therefore it is suggested to avoid long calls. However day trader can try both long and short call depending upon the price movement and as suggested above.

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.

Contact me for strategic guidance to enter and exit the trade.