FxWirePro: Gold upside capped by 7- day EMA, good to sell on rallies
Gold gained mildly till $1142 yesterday from the ten month low of $1122. It is currently trading around $1136. Gold has shown a slight jump but upside will capped by 7- day EMA due to dollar strength and equity market ou…
Gold gained mildly till $1142 yesterday from the ten month low of $1122. It is currently trading around $1136.
Gold has shown a slight jump but upside will capped by 7- day EMA due to dollar strength and equity market outperformance.S&P500 index reached new all time high of 2277 on Dec 13th 2016 and slightly declined from that level.
Technically Gold is facing minor resistance at $1145 (7- day EMA) 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 $1140-42 with SL around $1150 for the TP of $1116/$1090.
