Gold trades weak,market eyes ECB meeting and China data this wee
Major resistance - $1264 (200- day MA).
Major support - $1240 (Oct 7th 2016 low).
Gold jumped slightly after making a low of $1245.80.It is currently trading around $1255.In the daily chart gold closed below 200 –day MA for the three consecutive days and this confirms major weakness is on the cards.
Market awaits central bank policy decision and China’s economic data for further direction.
Major policymaker European Central Bank policy meeting and press conference will be held on Thursday and also Chinese figures on third-quarter GDP, industrial production, and retail sales data to be released on Wednesday.
On the higher side, major resistance is around $1264 (200- day MA) and any consecutive close above that level confirms the minor trend reversal. Any close above targets $1274 (23.6% retracement of $1375.15 and $1241)/$1277/$1295 (21- day MA).
The support is at $1240 and any violation below will drag the gold till $1226 (161.8% retracement of $1241 and 1264.93)/$1210.
It is good to sell on rallies around $1260-64 with SL around $1275 for the TP of $1241/$1225.
Major support - $1240 (Oct 7th 2016 low).
Gold jumped slightly after making a low of $1245.80.It is currently trading around $1255.In the daily chart gold closed below 200 –day MA for the three consecutive days and this confirms major weakness is on the cards.
Market awaits central bank policy decision and China’s economic data for further direction.
Major policymaker European Central Bank policy meeting and press conference will be held on Thursday and also Chinese figures on third-quarter GDP, industrial production, and retail sales data to be released on Wednesday.
On the higher side, major resistance is around $1264 (200- day MA) and any consecutive close above that level confirms the minor trend reversal. Any close above targets $1274 (23.6% retracement of $1375.15 and $1241)/$1277/$1295 (21- day MA).
The support is at $1240 and any violation below will drag the gold till $1226 (161.8% retracement of $1241 and 1264.93)/$1210.
It is good to sell on rallies around $1260-64 with SL around $1275 for the TP of $1241/$1225.