Since 2008 Gold has almost doubled in price fueled by safe investment amid QE. From the peak of 1,920 it almost corrected more than a half within 2 years. Currently, it is trading at a crucial junction levels.
Gold prices remain weak for the remainder of the year as investors await more clear picture from Fed regarding QE taper time. Prices may rise humbly in the near term as gold bulls keep alive lower level bidding. China is very strong on buying gold with an 18% rise on the quarter and 40% increase YTD.
From the last couple of trading sessions, we bounce from lower levels at 1,210. I expect this is a short-term support and 1,255 is the near-term resistance. If we look at the daily charts, I find positive divergence in charts, which results some pull pack possibility. In the near term we expect a bigger moves to take place.
In daily charts 1,208 and 1,180 are the parallel support levels. Below 1,208 the next support is at 1,180. Below 1,180 technical support comes at 1,150, 1,090. Breaks below that give a big fall towards 1,040 (the longer-term trendline support and parallel support) a chance to take place.
LONGER TERM – If positive divergence continues in the daily charts, prices will go up in the short term towards 1,295, 1,350, 1,450.
NEAR TERM – 1,278 strong resistance.
INTRA VIEW –
1,243 RESISTANCE, cmp 1,241. Above 1,243 NEXT TARGETS AT 1,250, 1,255, 1,265, 1,275.
UNABLE TO CROSS 1,243 DOWN SIDE TARGETS 1,230, 1,210.
The material has been provided by InstaForex Company – www.instaforex.com
Since 2008 Gold has almost doubled in price fueled by safe investment amid QE. From the peak of 1,920 it almost corrected more than a half within 2 years. Currently, it is trading at a crucial junction levels.
Gold prices remain weak for the remainder of the year as investors await more clear picture from Fed regarding QE taper time. Prices may rise humbly in the near term as gold bulls keep alive lower level bidding. China is very strong on buying gold with an 18% rise on the quarter and 40% increase YTD.
From the last couple of trading sessions, we bounce from lower levels at 1,210. I expect this is a short-term support and 1,255 is the near-term resistance. If we look at the daily charts, I find positive divergence in charts, which results some pull pack possibility. In the near term we expect a bigger moves to take place.
In daily charts 1,208 and 1,180 are the parallel support levels. Below 1,208 the next support is at 1,180. Below 1,180 technical support comes at 1,150, 1,090. Breaks below that give a big fall towards 1,040 (the longer-term trendline support and parallel support) a chance to take place.
LONGER TERM – If positive divergence continues in the daily charts, prices will go up in the short term towards 1,295, 1,350, 1,450.
NEAR TERM – 1,278 strong resistance.
INTRA VIEW –
1,243 RESISTANCE, cmp 1,241. Above 1,243 NEXT TARGETS AT 1,250, 1,255, 1,265, 1,275.
UNABLE TO CROSS 1,243 DOWN SIDE TARGETS 1,230, 1,210.
The material has been provided by InstaForex Company – www.instaforex.com
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