FxWirePro: Gold trades weak, good to sell on rallies
Chart Pattern – Bearish Divergence (RSI and MACD). Gold has shown a minor profit booking after hitting high of $1365. The yellow metal has declined almost more than $20 and hits low of $1342.60. US dollar index has recov…
Chart Pattern – Bearish Divergence (RSI and MACD).
Gold has shown a minor profit booking after hitting high of $1365. The yellow metal has declined almost more than $20 and hits low of $1342.60. US dollar index has recovered almost 70 pips from the low of 88.44. It is currently trading around 89.15.
US Dollar has shown a minor recovery but still weakness persist and it should break above 90.30 (10- day MA) for minor bullishness till 91.
The near term support is at $1340 (10- day MA) and any violation below will drag the metal to next level till $1328 (20- day MA)/$1320 .Minor weakness below $1330. Any break below $1330 will drag the gold till $1324/$1313.
On the higher side near term resistance is around $1357 and break above targets $1366/$1375
It is good to sell on rallies around $1350-52 with SL around $1357 for the TP of $1340/$1330.
