GOLD IN $ TERMS A TECHNICAL UPDATE-10-4-2016

GOLD IN $ TERMS

Gold closed at $1243.80 on 8-4-2016

SUPPORT:- $1232/1210.30/1206/1191.70/1181.60/1167.30/1162.10/1141.60/1130.40/1103.80/1061.50/1060.20/1044.50.

RESISTANCE: - $1246.80/1255.60/1263.90/1271.90/1287.80/1307.80/1324.30/1346.80/1361.80/1392.60/1434/1487.20/1539.

Technically it has been bullish for last few months (see my post for 18-1-16 & 15-2-2016) and it is still looking good on the chart. After making a recent high of $1287.80 on 11-3-2016 it corrected and has been consolidating for last few weeks in the range of $ 1263.90---1206 and now it seems that technically it is ripe to give an upside breakout from $1263.90 the upper band of the range and if it does and sustain the breakout then it would be heading for good rise and may surpass its recent high of $1287.80. Moving up it would face huge resistance in the range of $1263.90---1287.80—1308—1355 but looking at the overall technical setup it seems that it may cross or hit the said resistance points this time. Please note that if it moves down it has good support at $1191.50 & 1181.60 and then from its long term moving averages which are in the range of 1176—1131. The bias is on the upside now therefore it is suggested to follow buy on dip strategy but not below $1206 and get alerted in long trade below $1191.50 and exit trade if it moves and sustain below $1181.60.   Since it is having support in the range of $1176—1131 from its long term moving averages, so if it goes below $1191.70 and $1181.60 level then one can try long call near 1131 also with a stop loss of below $1120.But please note that it would be safe to try long call above $1191.70 only with a stop loss of below $1180.

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