Gold Hedge medium term bullish
CommodityOnline | May 05, 2014 06:33AM ET
NCDEX Gold hedge price on the daily chart as shown above has taken multiple support at Rs. 24700 level. Also, recently price has formed double bottom pattern with RSI divergence, as seen in the chart. Divergence is formed when prices make same low but RSI makes higher low. Thus indicating reversal. Added to this a break of the downward sloping trendline R support our bullish view on the commodity. Prices are likely to test the neckline of the pattern at Rs 25900.
Hence we recommend to go long on the commodity for the target of Rs.25900 in the medium term.
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