Gold technical analysis for 19 to 23 May 2014
Gold daily chart technical analysis
Gold future on last trading session closed at 28,089 with loss. On daily chart, gold prices are in downtrend and trading below all short-term averages with fresh bearish indicator patterns. For next week, gold will have supports around 27,900 and then 27,500. On upside 28,650 and 29,000 are strong resistance level. 28,650 is gold 1-month average level and 29,000 is gold 3-month average level. A small “head and shoulder” pattern neckline breakdown was seen in last session so expect sharp downside rally in next week on panic selling. Daily chart indicators are bearish and suggesting primary trend is resumed.
Traders below 29k keep sell on rise view and expect target 27,900 and below 27,500. Those already short in gold must trail profits with stop loss.
Gold weekly chart technical analysis
Gold future this week tumbled by 1.53%. This was third losing week for gold prices. This week gold future had hit high at 28,798 while low was at 28,014. Total 800-rupee weekly range or 2% plus swing and closed with loss. Gold weekly chart price trend and momentum both are bearish. Gold is trading below major long-term average and heading towards 2013 lows. On upside 28,800 is 2 years average level and 29,400 is 6 and 12 month averages bearish crossover level. Both will be strong supply points for futures and on downside, 27,200 and 26,000 are support zones as well as targets. Weekly chart indicators patterns are bearish and suggesting weakness ahead.
Investors below 28,800 stay short or stay away from gold. 25k to 25,500 will be good zone to enter long with medium term view if it comes.