Gold(17.11.2014) moved higher in last week on profit booking as well as on challenging fundamental growth of major economy. However branching the strong resistance zone with volume could change long term scenario.
Now gold is trading around $1184 & we can see on charts, friday gold rally more than 3% & provided a closing above $1182-1172 resistance which where able to stop gold momentum many times. Technically after breaking $1180 mark gold made a low of $1131 while unable to close below $1138 mark which represent the 161.8% Fibonacci retracement level. This area was very close to the lower trendline of current descending channel too. An elliott wave bearish pattern completion also suggest for 3 corrective wave pattern ahead.
On fundamental side, upcoming swiss bank referendum on 30th nov could play major role for gold price. A voting result in favor of swiss referendum will force swiss banks to buy big quantity of gold which will never come back in market for liquidation.
Based on above studies , there is a major probability that gold will provide a corrective move towards support zone & then move upside for possible targets around $1207 & then $1225 atleast. A day close below $1172 will delay the forecast.
Note – Above technical analysis is not a buy/sell recommendation. For recommendations Contact Us
MCX levels -> S2(26160) S1(26300) cmp(26425) R1(26650) R2(27000)