Tuesday, September 8, 2009

Gold Short term technical view -

Gold Short term technical view : comex
Gold Short term view: Gold Closed down sharply below the 1000 $ mark, after making intraday High of 1007$. Profit Booking at current psychological level of 1000 Dollars cannot be ruled out as gold after consolidation for last weeks rallied Sharply and has reached this Crucial level again almost after six Months. Last time it made a High near this level was Exactly on February 20, 2009 making it a Double top on daily charts, Signally a Pause in the up-trend same time first caution Sign for the Bulls. Making 1007 $ now as very important Level Closely looking at the daily charts Can see a Nice inverted hammer - shooting star Formed at top Signally a pause in the current trend and the first caution Sign. The Reversal comes with Signals as Double top on daily charts, near the short term upward Trend line Resistance of Expanding triangle it was shaping up in last few weeks. Looking Closely at the Intraday 4 hour Chart which is widely followed, It made a good harami Reversal Exactly above the triangle breakout Level giving a False signal of buy near the top and reversed Sharply in the day to make New lows intraday .the Above all factors Shows that gold is Clearly loosening strength near the current Levels and Now will Face quite string Resistance at 1007-1012 mark , a breach above Same could upside up to 1033$ . As gold is now in the overbought zone which is indicated by the RSI on daily and Hourly charts any Rally on the upside above 1007 would mean shorts covering and nothing else. On the Downside if gold manages to Close below 984$ in a day or two would mean a confirmation of Short term possible top and could open possible Down side targets of 975$ & 955 $. Though Strong Support is Expected in zone of 928-942 $ , For Medium term . A close Below Same would open downside targets till 875 $

Trend Reversal levels: 984 $

Trend bias : Further Bullish Only above 1007 or else Sideways to down Possible

Next targets :975$-955$

(Reco:Note Those taking Fresh shorts at current level best possible SL is 1007 $ and Those Already long can Either Look to exit on Rise or maintain a trailling Stop Loss of 984 $)