Spot Gold on a weekly chart, price is making higher high, higher low pattern, along with increase in volume, suggesting price may move further up, indicate positive outlook for the gold. On the BB front price i.e. $1281.50 is ridding the upper Bollinger band of BB, indicate bullish view.
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But we also witnessed a double top pattern i.e. $1303.50 (19-01-2015) and $1305.95 (06-05-2016), which indicate profit booking and price has reversed from the same level, indicate cautious view.
Momentum oscillator RSI turned down, which will move towards southward, indicate cautious view. Looking towards chart study, we believe unless and until gold doesn’t closed above $1305 levels for at least 3 trading session, we cannot say correction is over.
For more bulls to come Gold price has to closed above $1305. However, unless the strong resistance of $1305 is breached, we may expect profit booking, but is most likely to move past $1305.
Looking towards chart study and pattern, we believe any closed above $1305, gold may further extend its rally towards $1393, $1538 levels, where else $1226 will act as a strong support level.
But we also witnessed a double top pattern i.e. $1303.50 (19-01-2015) and $1305.95 (06-05-2016), which indicate profit booking and price has reversed from the same level, indicate cautious view.
Momentum oscillator RSI turned down, which will move towards southward, indicate cautious view. Looking towards chart study, we believe unless and until gold doesn’t closed above $1305 levels for at least 3 trading session, we cannot say correction is over.
For more bulls to come Gold price has to closed above $1305. However, unless the strong resistance of $1305 is breached, we may expect profit booking, but is most likely to move past $1305.
Looking towards chart study and pattern, we believe any closed above $1305, gold may further extend its rally towards $1393, $1538 levels, where else $1226 will act as a strong support level.
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