Gold: Looking at the chart gold has rallied from the lower level of 1308$ and tested the level of 1576$ and
after testing the same level has been in the consolidation move. After testing the 200 DMA at point D has
given a sharp rise and also breakout of the falling trend line at 1550$. After the breakout sharp rise in price
was seen and has rallied by 161.8% extension of wave A from point D testing the level of 1911$ where the
resistance was at 1915$. After testing the high of 1912$ short dip was seen where it tested the level of 1700$
on lower side and again sharp reversal was seen in the price. Currently it’s again trading near the all time
high of 1900$ on closing basis and if the resistance of 1915$ holds can look at double top formation and
will give a corrective move. On lower side immediate support is seen at 1870 as if the support is broken
then will move to test the level of 1840 which is the strong support. Sustain trading below 1840$ will
confirm further downside move and test 1770 and 1700$ in short term. If we look at selling from current
level and further below 1700$ down side rally may continue to test 1600$ in medium term. Stochastic
which were trading above below 90% zone is showing sign of reversal with negative intersection where
some fall in price may be expected in near term.
