Gold: Possible Double Bottom
Shiv Kumar | Dec 07, 2016 08:13AM ET
Last time i wrote about the possibility of potential double bottom formation on 5th December when gold was trading around 1170 and expected a dip towards the bottom area of 1160 again and bounce from there with the holding of 1156 area, so far it did the same thing and now trading at 1175. But this all is useless until it gives the sustained break above 1180 followed by 1190. After break of 1198 we can expect a short rally up to 1230$.
Conversely if it fails again to surpass the resistance area then we can see again a test of 1160-1158, below 1156 another drop is possible up to very strong support zone of 1140. Right now we are with bulls but with strict stop of 1156
Here is the 5 hr chart of gold
Resistance:1180/1190/1204
Support : 1166/1156/1140
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