COMEX Spot Gold CMP: $1,101/oz
Strategy: Sell @ 1,101 (CMP) | Stop @ 1,113| Target @ 1,050—976—948
Reversal Buy Above 1,113 | Stop @ 1095 | Target @ 1130 - 1151 - 1183
Strategy: Sell @ 1,101 (CMP) | Stop @ 1,113| Target @ 1,050—976—948
Reversal Buy Above 1,113 | Stop @ 1095 | Target @ 1130 - 1151 - 1183
The technical chart indicates that gold is in a downtrend and the yellow metal is likely to remain under pressure if prices fail to cross the resistance level of 1,113 on the higher side on daily closing bases. COMEX Spot Gold is currently quoting at $1,101/oz.
Gold declined from high of 1,183 (Point A) in October 2015 to test the low of 1,046 (Point B) in December last year. Thereafter, gold witnessed a consolidation phase, with prices moving in a range of 1,046 and 1,080.
The immediate support for gold is seen at 1,050 and if it breaks this level then prices would weaken further.
According to the technical chart, the difference between Point A and Point B is 137 points and considering 100% of this difference from 1,113 (Point C), the downside target comes to 976.
A fall below this level may take prices down further to 948 levels, which is 121% of the difference between Point A and Point B.
Gold’s downtrend remains intact unless prices cross the resistance level of 1,113.
However, if gold reverts from the current level and crosses the resistance level then prices may rise towards 1,130-1,151 levels, which are 61.8% and 76.8% retracement of Point A to Point B, respectively.
