Gold price behavior has formed the triple top pattern with top 1 at 1263.74 levels, top 2 at 1295.45 levels and top 3 at 1295.98 levels (refer daily charts).
Currently, this bearish pattern and bearish DMA crossover have caused the bears to break below trendline support.
The current prices remain well below 21DMAs despite consecutive upswings from 3-4 days, we foresee more slumps likely upon shooting star & breach below strong support at EMAs on monthly terms.
On a broader perspective, it seems that double top pattern has occurred on the weekly chart.
The upswings in consolidation phase have rejected at 1294.50 levels, consequently, tumbled and breached below 50% Fibonacci retracement levels. Expect more slumps upon breach below strong supports at 1250 levels.
Historically, shooting star also pops up at this same resistance levels and evidently rest is the history, in an interim uptrend, gold prices have almost retraced to the lows of 1259 from the recent highs of 1295 levels in the consolidation phase.
RSI and stochastic curves are converging to the price drops to indicate the strong selling momentum.
While current prices on this timeframe have been sliding below DMAs, MACD on the other hand signals downswings are expected to extend.
For an intraday speculation, we see the price to remain within the range between 1255.95 and 1240. Hence, we advocate buying boundary binaries with upper strikes at 1255.95 and lower strikes at 1240 levels.
The trading between these strikes likely to derive certain yields in this puzzling trend and more importantly these yields are exponential from spot movements.
For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1255.95 > Fwd price > 1240).
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