Gold (24.9.2014) fall sharply in last couple of weeks & reaching very close to the major support zone.
Now gold is trading around $1221 & as we can see on charts , gold proving some upside momentum from last 2 days with some very obvious reasons. The downside rally in gold filled a gap on charts which was created on 1st week of January 2014. At the same time this area also representing 261.8%% Fibonacci retracement. A long term support trendline is staying very close around $1196 mark & indicator are over sold now. The current formation of candlestick pattern suggesting for a possible bounce or a corrective rally as of now. Now very sure about the bottom is created or not.
On fundamental side , US counter on global issue & some weaker economic data might support price in coming trading session.
Based on above studies , it is possible for gold to move upwards towards possible targets around $1240 & then $1258 in coming trading session.
Note – Above technical analysis is not a buy/sell recommendation. For recommendations Contact Us
MCX levels -> S2(26290) S1(26445) cmp(26620) R1(26870) R2(27280)