FxWirePro: Yellow metal offers shorts in short run but on verge of hitting multi-month highs after surpassing major resistances and 28.6% Fibos

Technical Inference:

Gold price curve forms double top patterns with top 1 at 1375.03 levels and top 2 at 1373.04 levels (see intraday chart).

Currently, the prices are testing support at this double top neckline, at 1350.33 levels. Day trend seems quite bears’ favor; if it breaks more weakness could be observed.

Although intraday bears are active it is advisable to carry short trades for deliveries as the intermediate trend seems uptrend and it looks like making a reversal of major downtrend.

It is evident that the bulls have managed to clear the major hurdle at 1225, 1294.50, and now at 1341.26 levels (i.e. 38.2% Fibonacci retracements from the bottoms of 1046.23 levels (see monthly graph).

At this juncture, RSI on all time frames has been converging upwards with every rally ever since it has bottomed out from the lows of 1046.23 levels.

Hence, even though the current prices have dipped slightly today, it has all possibilities to bounce back.

To conclude, the short-term trend seems little struggling, on the contrary, the prices can take off upwards any given time if it manages to hold 1350.37 and above on a closing basis to hit multi-month highs of 1391.97 levels.

Trade tips:         

Intraday speculators can eye on boundary binaries keeping 1356.7043 upper brackets and 1350 as the lower bracket.

In a medium term perspective, one can also eye on long positions in the gold's mid-month futures for an unlimited returns that could be entered by the futures speculator to profit from a rise in the price of the underlying precious metal.