FxWirePro: Gold upside capped by 38.2% fibo, good to sell on rallies
Gold formed almost a double bottom at $1303 in the weekly chart and shown a good jump from that level. It has jumped till $1325.89 and is currently trading around $1320.50. The slight jump in yellow metal has been suppor…
Gold formed almost a double bottom at $1303 in the weekly chart and shown a good jump from that level. It has jumped till $1325.89 and is currently trading around $1320.50. The slight jump in yellow metal has been supported by decline in US dollar index. US dollar index has declined almost 100 pips from the high of 93.42.
The yellow metal upside is capped by 38.2% fibo and 100 – day MA ($1326.30 and $1325.89) and any major bullishness can be seen only above this level. Any break above will take the commodity to next level till $1333 (Weekly Tenken-Sen)/$1340.
On the lower side, major support is around $1303 and any break below will drag the pair to next level till $1294/$1280in the short term.
It is good to sell on rallies around $1322-25 with SL around $1333 for the TP of $1305/$1300.
