FxWirePro:Gold upside capped by 3- day EMA, good to sell on rallies
Major support - $1170 (61.8% retracement of $1375 and $1046) Minor resistance- $1200 (3- day EMA) Pattern Formed- Bullish Divergence (MACD) Gold has broken major support at $1180 and declined sharply till $1170.61 yester…
Major support - $1170 (61.8% retracement of $1375 and $1046)
Minor resistance- $1200 (3- day EMA)
Pattern Formed- Bullish Divergence (MACD)
Gold has broken major support at $1180 and declined sharply till $1170.61 yesterday. It is currently trading around $1178.
The yellow metal‘s upside is capped by 3- day EMA ($1192) and any break above targets $1200/$1212 (10- day MA). The bullish divergence pattern formed in daily chart shows that there will be slight jump till $1192/$1200. The slight jump should be used as the opportunity for selling.
Short term bullishness only above $1235.
On the lower side, any break below $1170 will drag the commodity down till $1160/$1147 level.
It is good to sell on rallies around $1190-92 with SL around $1201 for the TP of $1170/$1161
