Gold forms Head and Shoulder pattern, good to sell on rallies
Pattern Formed- Head and Shoulder Pattern
Neck line - $1217
The commodity has recovered after making a low of $1223.It is currently trading around $1247.
Yellow metal jumped till $1257.88 and started to decline from that level.
Gold has formed clear Head and Shoulder pattern with Head at year high around $1284.40 with left shoulder around $1263 and right shoulder around same level $1262.60.
Neck line is around $1217 which is major support and break below will drag the commodity till $1160/$1141 (200 day MA)
On the upside major resistance is at $1263(shoulder level) and break above targets $1282/$1284.The yellow metal minor resistance around $1243 and break above will take the gold till $1257/$1263.
Major bullishness can be seen only above $1284.
It is good to sell on rallies around $1250-$1253 with SL around $1263 for the TP of $1217/$1190
Neck line - $1217
The commodity has recovered after making a low of $1223.It is currently trading around $1247.
Yellow metal jumped till $1257.88 and started to decline from that level.
Gold has formed clear Head and Shoulder pattern with Head at year high around $1284.40 with left shoulder around $1263 and right shoulder around same level $1262.60.
Neck line is around $1217 which is major support and break below will drag the commodity till $1160/$1141 (200 day MA)
On the upside major resistance is at $1263(shoulder level) and break above targets $1282/$1284.The yellow metal minor resistance around $1243 and break above will take the gold till $1257/$1263.
Major bullishness can be seen only above $1284.
It is good to sell on rallies around $1250-$1253 with SL around $1263 for the TP of $1217/$1190