FxWirePro: Gold faces strong resistance at 5- day MA, good to sell on rallies
Gold gained mildly from the ten months low of $1122. The yellow metal jumped till $1141.25 yesterday .It is currently trading around $1139.72. Gold has shown a slight jump but upside will capped by 10- day MA due to Fede…
Gold gained mildly from the ten months low of $1122. The yellow metal jumped till $1141.25 yesterday .It is currently trading around $1139.72.
Gold has shown a slight jump but upside will capped by 10- day MA due to Federal funds rate hike projection. It is expected to hike thrice next year.
Technically Gold is facing minor resistance at $1145 (5- day MA) and any break above will take the pair till $1156 (10- day MA)/$1174 (21- day MA). The yellow metal should close above 21- day MA ($1174) for further jump till $1188 (Dec 4th 2016 high)/$1197.
On the lower side any close below $1116 (78.6% retracement of $1046 and $1375) and any violation below will drag the pair down till $1100/$1085.
It is good to sell on rallies around $1150-52 with SL around $1165 for the TP of $1116/$1090.
