After the break below the neckline of triple top formation in gold prices have evidenced mammoth slumps. On breach below 1308.42 levels on , you can observe the tumbling of gold prices until 1241.50 levels where we saw some support but there is no substantiation from any technical indicators.
But bulls attempt to reclaim gains in this week, is it a bottoming out from 3-1/2 months’ lows? This has been a million dollar puzzle, we advise don’t jack up fresh longs on investment grounds.
So, ongoing upswings are not to be deemed as buying opportunities for long-term investors as we foresee more slumps to be evidenced on the break below the neckline.
On weekly charts, 7DMA crosses below 21DMA which is again a sell signal.
On monthly plotting, occurred at peaks (1315.55 levels) of the intermediary trend.
The current prices drifting below 7EMA after the rejection of stiff resistance at 1385.
Current prices slid below 7EMA and attempting to drift below 21EMA after rejection of stiff resistance at 1385, expect more dips on slip below
Both leading oscillators on weekly and monthly terms signal intensified selling momentum. , curves have been powerful in suggesting that the current to prevail as they reached oversold territory but no trace of recovery on weekly charts.
While on weekly terms remains in the trajectory that is likely to drag down further.
Aggressive speculators can choose the debit put spreads as the selling indications are piling up on the weekly graph. So buying In-The-Money Puts and to reduce the cost of hedging by financing this long position, selling an Out-Of-The-Money put option is recommended.