The gold price has been dragging the rallies from yesterday's close at 1187.50 to the current 1188.04 levels (refer daily plotting).
On weekly terms, after a test of support at around 23.6% Fibonacci retracement, the bull swings manage to clear 38.2% Fibonacci retracements, as bulls break major resistance at 1175 marks and current price spike above 7EMA with bullish momentum, we see upside traction for gold prices as both leading & lagging indicators confirm bullish swings, current prices well above DMAs heading for resistance of 1213.18 (i.e. 50% Fibonacci retracements).
The stochastic oscillator has reached overbought region on dailies but no traces of %d crossover and this leading oscillator on weekly term has been popping up with buying pressures as it has shown a clear %k crossover from the oversold region.
While RSI also evidences healthy bullish convergence on both timeframes that indicates the strength in the ongoing uptrend.
MACD on the other hand, indicates prevailing upswings to prolong further.
7DMA crosses over 21DMA which is a bullish crossover.
Trade tips:
On intraday terms, as both stochastic and RSI noise with strong momentum in buying interests as they are converging to the ongoing upswings, we advocate staying long via one touch binary call options for a target of 40-50 pips. On the flip side, stay short in mid-month futures on hedging grounds as more slumps are on the cards in the weeks to come.
