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Gold trades weak, market eyes ECB meeting and China data this week

Major resistance - $1264 (200- day MA). Major support - $1240 (Oct 7th 2016 low). Gold jumped slightly after making a low of $1245.80.It is currently trading around $1255.In the daily chart gold closed below 200 –day MA …

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Gold trades weak, market eyes ECB meeting and China data this week
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  • Major resistance - $1264 (200- day MA).
     
  • Major support - $1240 (Oct 7th 2016 low).
     
  • Gold jumped slightly after making a low of $1245.80.It is currently trading around $1255.In the daily chart gold closed below 200 –day MA for the three consecutive days and this confirms major weakness is on the cards.
     
  • Market awaits central bank policy decision and China’s economic data for further direction.
     
  • Major policymaker European Central Bank policy meeting and press conference will be held on Thursday and also Chinese figures on third-quarter GDP, industrial production, and retail sales data to be released on Wednesday.
  • On the higher side, major resistance is around $1264 (200- day MA) and any consecutive close  above that level confirms the minor trend reversal. Any close above targets $1274 (23.6% retracement of $1375.15 and $1241)/$1277/$1295 (21- day MA).
     
  • The support is at $1240 and any violation below will drag the gold till $1226 (161.8% retracement of $1241 and 1264.93)/$1210.

It is good to sell on rallies around $1260-64 with SL around $1275 for the TP of $1241/$1225.

 

 

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