Spot Gold May Trade On Correction At Lower Levels

Published 04/29/2013, 07:29 AM
Updated 05/14/2017, 06:45 AM
GC
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The correctional bounce in gold extended to retest the major resistance area starting from 1478.00 level. The area starting from 1478.00 to 1520.00 could be a perfect sell zone, as price may resume the overall bearish wave after completing a normal retest of broken support area. We expect the bearish wave to resume this week, targeting areas near the recently printed low around 1320.00.

Spot Gold
Support: 1478.00, 1495.00, 1520.00, 1530.00, 1540.00
Resistance: 1459.00, 1448.00, 1439.00, 1425.00, 1405.00

Based on the charts and explanations above, we prefer to short gold around 1495.00 targeting 1450.00, 1400.00 and 1340.00. Stop loss with daily closing above 1522.00

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