Gold (16.10.2014) traded higher as per our article published on sep. 24th & reach to $1240 mark with some if & but.
This time lets start with some economic fundamentals, US doing with as far as economic data concern while a continue fall in equity market in this week may showing an effect of end of QE3. Euro area facing major hurdles in economic while china continue showing weak data with slowing economy activity.
All this activity leading to a sharp fall under stocks , oil , base metals & bond then the question is “where is investment liquidity is going on ?” Yes the answer could be bullion , gold , if it continue.
Technically , gold is trading around $1239 now & as we can see on charts, gold was able to bounce sharply form $1280 area & made a triple bottom. This move was well supported by volume & an ascending trendline. Now as we can see on charts, gold have lots of minor hurdles ahead but a reverse H&S pattern & RSI stability above 50 mark, suggesting the move to continue.
Based on above studies, there is major possibility for gold to move higher for possible levels around $1252-1260-1268-1283 while a reversal below $1221 will force us to reanalyze the charts.
Note – Above technical analysis is not a buy/sell recommendation. For recommendations Contact Us
MCX levels -> S2(27000) S1(27210) cmp(27430) R1(27630) R2(27880)