Saturday, 13 February 2016

GOLD IN $ TERMS-- A TECHNICAL VIEW-15-2-2016



GOLD IN $ TERMS


Gold closed at $1239.40 on 12-2-2016

SUPPORT:- $1191.70/1181.60/1169.80/1141.60/1130.40/1128/1122/1103.80/1061.50/1060.20/1044.50.

RESISTANCE: - $1255.60/1263.90/1297.60/1307.80/1324.30/1346.80/1361.80/1392.60/1434/1487.20/1539.

I was bullish on gold and had perceived an upside range of $1191—1256(see my post of 18-1-2016).In fact it hit a high of $1263.90 on 11-2-2016. It is still looking extremely good and made lot of bullish pattern on the chart, so further rise is not ruled out but moving up from here, it would face huge resistance in the range of $1263—1308—1370 and then $1520—1660.But looking at the overall technical setup now it seems that it is likely to cross at least first range of $1263-1308-1370 for sure if not second one. Please note that it has good support at $1191.70/1181.60/1141—1122,therefore as long as it holds $1141—1122 range this up move may continue off course with in between down correction from time to time. In view of the above buy on dip strategy should be followed, but if it goes below $1191.70 and $1181.60 level then try long call near $1141-1122 with a stop loss of below $1103 or if it moves and sustain above $1191.70 again. Please note that it would be safe to try long call above $1191.70 with a stop loss of below $1180.The bias is clearly on the upside.

REMARKS:-Long term trend is down but short and medium term trend is up. It is therefore suggested to adopt buy on dip strategy 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








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