Gold double bottom has worked so far but still a long way to go
Overview- Gold has been trying to stabilize around the 1680 level
for about a month now. Currently, the support appears to be holding well but
the bulls have a long way to go.
Analysis - From the chart, you can see that the 1678 support level
has been intact so far and Gold has rallied from that level. But, it will face a
confluence of resistance at the 1745 level. First, the horizontal resistance and
secondly, the dynamic resistance offered by the 100-period moving average which
has put a lid on all the rallies since the last week of January.
Probable trade set-up - Based on the above analysis, if there are
rejection candlesticks in the resistance area that I mentioned above, the selling
Gold@1745 level would be a good idea. A break through the resistance, however,
will be a very good sign for the bulls.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
for about a month now. Currently, the support appears to be holding well but
the bulls have a long way to go.
Analysis - From the chart, you can see that the 1678 support level
has been intact so far and Gold has rallied from that level. But, it will face a
confluence of resistance at the 1745 level. First, the horizontal resistance and
secondly, the dynamic resistance offered by the 100-period moving average which
has put a lid on all the rallies since the last week of January.
Probable trade set-up - Based on the above analysis, if there are
rejection candlesticks in the resistance area that I mentioned above, the selling
Gold@1745 level would be a good idea. A break through the resistance, however,
will be a very good sign for the bulls.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.