Gold Near Resistance
Shiv Kumar | Apr 04, 2017 06:23AM ET
Gold entering in resistance area of 1262-1265 again, last time it showed rejection in the same area and tumbled down. Will it be the different this time or will it follow the path of higher prices?
Here is the 4 hour chart below, right now it is trading at 1261.
As far as indicators are concerned, MACD is in favor of bulls while RSI and stochastics are hinting at a cautious approach for bulls, as they are already in overbought area.
If gold fails again in this area then it will give an upper hand to bears due to a development of D.T. in the same area with a neckline below 1179.00, whereas a convincing follow up rally through this area will set another stage to challenge 1280 followed by 1300.
Sellers should have strict stops above 1265 for the target area of 1180. Buyers definitely have a technical advantage here and should come forward to clear this area.
Let's have a look on the hourly chart given below:
Hourly chart is showing overbought indicators and slight pullback may be there. Caution required for bulls here as any failure will accelerate the movement south.
Resistance: 1265/1280
Support: 1250/1232
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