The gold (XAUUSD) price has extended its bullish rally on channel resistance break-out. But we see price rejecting at the stiff resistance of $1317.91 levels (refer 4H charts).
The gold in intermediate trend has been spiking through rising wedge pattern which is bullish in nature, you could see bears popping up at wedge resistance with back-to-back shooting stars formations (see the circled area on weekly plotting).
The intermediate trend has been stuck in the tight range between $1,368.20 and $1,300.89 levels. To counter slumps, the hammer pattern has occurred at $1314.88 to intensify rallies.
While RSI and stochastic curves have been showing upward convergence on 4H plotting and downward convergence on weekly terms.
MACD on the other hand signals uptrend extension and indecisiveness on weekly terms, bullish bias though.
Despite the bullish DMA crossover, the prices are stuck between the stiff resistance of 1317.91 and 21DMA levels.
As you could make out that the price has been oscillating between 1365 and 1306.40 levels since 3rd January, the long-term investors should wait and watch out closely for decisive breach below 1365-68 levels but deploying a wise hedging for upside risks.
Well, at spot reference: $1,315.00 levels, in order to participate in prevailing selling interests, we advocate buying boundary spreads using upper strikes at 1317.91 and lower strikes at 1311 levels.
Alternatively, with a view to arresting potential upside risks, we advocate buying futures contracts of far-month tenors.
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