Gold trend analysis 26 to 30 May 2014
Gold daily chart technical analysis
Gold future on last trading session closed at 27,349 with gain. On daily chart, gold price trend and momentum both are strong bearish. Gold is trading below all short-term averages with oversold indicators patterns. For next week, gold has support at 27,100 and then 26,500 while on upside expect strong supply from market at 28,300 and then 28,800. 28,300 is gold 1-month average level and 28,800 is 3-month average level. Daily chart indicators are heavily oversold and suggesting early bounce back signs.
Gold Traders for next week, keep buy, accumulate view with strict stop loss below 26,500, and expect short covering rally up to 28,300.
Gold weekly chart technical analysis
Gold future this week almost tumbled by 3%. This was forth losing week for gold prices and in these 4 weeks period gold slumped from 29,000 to 27,000. This week gold future high point was 28,299 while low as at 27,100. Total 1200 rupees range or 4% volatility in prices and closed with loss. Gold future weekly chart price trend and momentum both are strong bearish. Prices are way below major medium to long-term averages with oversold indicators. From medium to long-term view, gold now has support at 27,000 and then 25,800 while on upside 28,500 and 29,000 are strong supply zones. 28,500 is 2 years average level and 29,000 is 6 and 12 month average level.
As indicators are oversold, investors keep contra view, follow buy, and accumulate view. We may see sharp reversal rally up to 29k.