Gold attempts for resistance at 1110.81, bears push below 21DMA
In last week, the gold prices attempted twice to test resistance at 1110.80 levels but rejected at the same juncture, on the contrary it has taken supports twice at 1088.36 (last two day's open and close).
As the gold prices approaching around 21DMA, fails to sustain the strength, so considering bears pressure at this juncture and long term downtrend we could foresee all signs of hitting the baseline of descending triangle once again at around 1062.23 to bounce back.
The recent price behavior has been the examples for how tightly it is holding at the same level of support at baseline several times in the recent past and we saw the jump all the way upto 1112.89 but from there it has not sustained that breach.
Bulls could not take it forward as 21DMA has acted as a resistance levels We believe, often and often we see bears trimming golds recent gains.
As the day opens at 1088.36 today with leading oscillators to converge on weekly but hesitated to shy below 1110.81 even if it makes an attempt of jump above supports but no much momentum seen to hold day highs (1106.69.40) to break above this resistance decisively.
For now, we can only see short term speculative buying opportunities but on a long term perspectives, one has to wait for clear confirmation, we can only see buying chances above 1132.17 and still carry bearish view as long as the prices maintain below 1132.17 (61.8% correction), so no surprise if the yellow metal plunges back to 1062 or even 1045.36 and then slipping towards 78.6% fibo targets.
Hence, contemplating above technical reasoning, for intraday speculative buyers it is advisable to go long in binary calls for targets of 1110.81 but in medium terms southward targets may resume at any point of time at 1086.10 levels can also be upheld and even up to 1062.17 levels.
As the gold prices approaching around 21DMA, fails to sustain the strength, so considering bears pressure at this juncture and long term downtrend we could foresee all signs of hitting the baseline of descending triangle once again at around 1062.23 to bounce back.
The recent price behavior has been the examples for how tightly it is holding at the same level of support at baseline several times in the recent past and we saw the jump all the way upto 1112.89 but from there it has not sustained that breach.
Bulls could not take it forward as 21DMA has acted as a resistance levels We believe, often and often we see bears trimming golds recent gains.
As the day opens at 1088.36 today with leading oscillators to converge on weekly but hesitated to shy below 1110.81 even if it makes an attempt of jump above supports but no much momentum seen to hold day highs (1106.69.40) to break above this resistance decisively.
For now, we can only see short term speculative buying opportunities but on a long term perspectives, one has to wait for clear confirmation, we can only see buying chances above 1132.17 and still carry bearish view as long as the prices maintain below 1132.17 (61.8% correction), so no surprise if the yellow metal plunges back to 1062 or even 1045.36 and then slipping towards 78.6% fibo targets.
Hence, contemplating above technical reasoning, for intraday speculative buyers it is advisable to go long in binary calls for targets of 1110.81 but in medium terms southward targets may resume at any point of time at 1086.10 levels can also be upheld and even up to 1062.17 levels.
