Gold: Doji and Hammer at 61.8 fibonacci level

The short term trend of gold seems bearish but from past of days bears are struggling to move down further. As yellow metal arrived at $1290 level which is 61.8% fibonacci level i.e. strong key support level.

 

 

strong counter attack from bullish campaign can’t be ruled out as we have seen few daily candlesticks as doji followed by hammer but still gold is trading below all the major and minor moving averages. Risky traders are advised to go for buy at current level with strict stop loss of $1280 level but if bulls are able to sustain above $1300 level then we must say that it’s time to accumlate. Positional traders should wait for the downside breakout of $1280 level to create short position or for breakout of $1300 level for long position. The RSI is trading at oversold territory which is indicating that some correction is  expected.

 

We should keep our bias bullish as long as $1280 level remains unbreached. The 1275 level is the key support level followed by 1260 level where as 1310  level is the key resistance level followed by 1335.

 

In the chart below we can see that an uptrend line is lying on the daily chart from the intermediate point of view which suggest us that bullish storm may come at any time but we are not discarding any other possibility.

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