The Hindu Business Line : COMEX gold may consolidate

Gold futures ended lower after rising for four sessions helped by dollar weakness and support from rising silver prices, which hit 22-year highs. COMEX gold futures pulled back higher in line with our expectations. As mentioned in the previous up date, the short-term picture hinted at a corrective pullback to at least $551-53 levels and only a daily close above $561 will signal the resumption of bullish trend. Resistance is quite strong now between $558-560 levels. Declines will be well supported at $545-48 levels, and an unexpected break below $543 will hint at a fall to $528-30 levels. As per our recent wave counts, we believe the current third wave to have ended at $575. A corrective fourth wave could still be in progress. A possible fifth wave impulse is expected to begin after the completion of this corrective sequence.

RSI is in the neutral zone indicating that it is neither overbought nor oversold. The averages in MACD have gone below the zero line of the indicator suggesting bearishness. Only a cross-over of the averages above the zero line will signal a bullish reversal again. Prices are above the short-term 8-day period EMA at $553.45, indicating short-term bullishness followed by the 34-day period EMA at $553. Therefore, look for COMEX gold futures consolidate and test the support levels. Supports are at 548 543 and 535. Resistances are at 558, 561 and 568.

More Stories on : Technical Analysis | Gold & Silver

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bearish undertone could keep crude range-bound

`Growers must contribute to rubber research'

Coonoor tea prices drop

Mixed trend at Kochi tea sale

Palm oil seen correcting lower

COMEX gold may consolidate

Why gold prices move ahead of metals

Lack of investment in mining to impact metals market

Will `terminator' seed tech gain entry?

Malaysia seeks duty cut on palm oil

Hetero to sell bird-flu drug to Indonesia, Bangladesh

`Birdflu scare will affect results'

Bird flu scare impacting egg, chicken market

Karnataka to formulate new fisheries policy

Maradu agri-market records Rs 5-cr biz

AP Markfed seeks hike in share capital