As we said yesterday, gold was probably moving within a pullback from $ 1,320.0 towards $ 1,331.0, and $ 1,337.0. That was true, and gold moved exactly within our levels and made a high at $ 1,334.30. In the hourly chart, the RSI is showing a completed positive divergence. We expect further up move in coming 1-2 days.
On an intraday basis, the price is facing resistance between $ 1,330.0 and $ 1,332.0. Buyers will come only above the $ 1,332.0 levels. We will see the next up move towards $ 1,335.0, $ 1,338.0, $ 1,341.50, $ 1,345.0, and $ 1,350.0 with intermediate resistance at $ 1,338.0. On the downside, the support exist at $ 1,323.0 and $ 1,320.0 (yesterday’s low). A break below yesterday’s low raises a bearish view and the next support exists at $ 1,317.0 (40EMA) in daily chart.
S1 $ 1,319.60 R1 $ 1,332.00
S2 $ 1,317. 00 R2 $ 1,338.00
S3 $ 1,307. 00 R3 $ 1,341.50
Positional basis, the price broke and closed below the 200 EMA level at $ 1,331.0, which is a strong bearish view until the price closes above that level. Yesterday’s low is very crucial in the coming trading days. This week, if the price holds and closes above the level of $ 1,320.0, we could expect some pullback. In case of any break and close below $ 1,320.0, another bear hug will take the price towards $ 1,315, $ 1,310.0, $ 1,307.0, and $ 1,297.0. We expect the correction will stop at the $ 1,310.0 level, and some consolidation will take place before any further up move .
S1 $ 1,320.0 R1 $ 1,331.0
S2 $ 1,317.0 R2 $ 1,338.0
S3 $ 1,307.0 R3 $ 1,345.0
The best strategy is to buy with sl at $ 1,320.0.
Sell below $ 1,319.60 with targets at $ 1,317.0, $ 1,315.0, and $ 1,310.0.