BSH: GOLD technical Outlook: Gold had seen a sharp rise in the enultimate week. Last week in our update we indicated that gold can consolidate in a range after the sharp run up. Last week it consolidated within $1306 to $1326 range and closed with marginal gains. Our sense is that this is an extremely good sign as it indicates that gold has a good support around the $1300 to $1306 area as the price has refused to go below the $1300 psychological mark. Our sense is that this sideways consolidation should break on the upside and achieve levels of $1363 in the coming trading sessions. The daily momentum indicator has a positive crossover and it is trading above the 20-and 40- day moving averages ie $1,280 a nd $1,289 respectively, which will act as crucial supports for gold in the coming trading sessions. Traders should trail their stop loss to $1,280, which is the 20-day simple moving average. The target on the upside is placed at $1,363, which is the weekly upper Bollinger band.
Posted on: Mon, 30 Jun 2014 10:10:34 +0000
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