Comments
Comex gold futures were lower on Thursday supported by weak US data, with market participants waiting for developments in Ukraine and a key jobs report for further cues. The latest rally has been linked to hopes that the US Federal Reserve’s determination to wind down its asset purchase programme might be stymied by some weaker than expected data. Comex gold futures moved against expectations. Prices were expected to head lower towards $1,280-85 in the coming sessions while the upside remains capped at $1,345.
As cautioned, a direct rise above $1,345 could hint at resumption in uptrend. While supports in the $1,328-30 range holds, we expect prices to initially test the significant resistance at $1,365 followed by $1,395 subsequently.
Fall below $1,328 could see prices declining to $1,311 initially, where a rising trend line support kicks in. Failure to hold support here could drag prices further. In the coming sessions, prices could potentially drop as mild negative divergence is seen in indicators which are bearish.
The wave counts stands unchanged so far, but could be reviewed once prices cross $1,365 levels. A failed fifth wave move at $1,800 resulted in a corrective decline to $1,181 in the form of wave “A”. A possible wave “B” is in progress with targets near $1,420 or even higher to $1,485. This means a wave “C” is expected to follow through which could target $1,150 or even lower. Alternatively, from the peak of $1,920 a corrective decline in the form of “A-B-C” is already over at $1,181 and a new impulse has begun. Confirmation of such an impulse will be seen at $1,535.
With the present move failing near $1,435-40, we will go with wave “B” ending at $1,433 and a possible Wave “C” underway with targets near $1,125-45 or even lower to $1,045. RSI is in the neutral zone now indicating that it is neither oversold nor overbought and displays a negative divergence. The averages in MACD are above the zero line of the indicator hinting at a bullish reversal.
Therefore, one can look to sell gold on rallies to $1,341-42 with a stop loss at $1,352 targeting $1,312 initially followed by $1,295 subsequently. Supports are at $1,328, 1,311 and 1,285 and resistances are at $1,365, 1,395 and 1,435.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.