Thursday, December 17, 2009

Gold Short term view

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Gold after Making new Life time High at 1226.25 $ , Saw Some Sharp correction & profit Booking in past three Weeks Correcting more than 11 % due to strengthing Dollar, manged to Closed today below the psychological level of 1100 $ making a Intraday low of 1095 $

Technical view: Gold has Multiple supports in the Range of 1085 $ --1070 $ . The Current fall should halt anywhere between these levels before it Resumes a pull back or Starts consolidating in Range of 1065 $--1123 $ . The First support is at 1083 $ which is Cuming from the trend line Support From the August 2009 Lows of 925 $ and Rising to above Levels . The Second Important Support Comes at 1078 $ which is 50 % Retracement Level of the Complete up move Which started from 922.5 $ in August 2009 to current high of 1226.25 $ December 2009 & below that is support coming From previous Resistance line - trend line Connecting the March 2008 high to Jan 2009 high Placed at 1070 $ . Sustained Trading below the 55 EMA at 1102 levels would mean that gold Is heading to test the above Mentioned Support levels

The daily charts Slow Stoch is completely in oversold zone and near the cross over suggesting a Small pull back is or consolidation near current levels cant be ruled out . The 14DRSI is at 39 approaching the Oversold zone .

A Close below 1070 $ level would Mean that gold in setting stage for a Longer term bearish market Opening further Possible downside till 1033 $ --1018 $-084 $