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International Spot Gold is trading in a vide range of $765 to $959 from last many weeks, where we have a large volatility and witnessed biggest single day movement.
Now market may see some consolidation where short term trades can be executed with tight stop loss as major support and resistance will play a critical role.
Spot Gold - Weekly Chart
Spot Gold weekly chart is showing major support in range of $857, $833 and $785. While major resistance can be noticed in range of $902, $926 and $959.
Technically speaking momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastic have crossed over up which is a bullish indication. The prices closed above short term and medium term EMA, which supports bulls. MACD is heading upwards in positive region, showing increase in bullish momentum. The 13-day RSI over 70 indicates the market is approaching overbought levels. It is a mildly bearish indicator. Current Spot Gold RSI is 51.15; hence market may show more bullishness.
Recommendation: Trader can enter with long position in range of $860-$855, Stop loss –break below $833, Target $900 , $924 and $955
Author - Kamlesh Jogi (Commodities Research Analyst)
Mail : kamleshjogi@gmail.com
