Gold weekly tips 12 to 16 May 2014
Gold daily chart technical analysis
Gold future on last trading session closed at 28,525 with loss. On daily chart, gold future is in downtrend and trading below short-term averages with bearish divergences. On upside 28,800 and 29,900 are strong supply zones as well as 1 month and 3 month averages respectively. On downside 28,300 and 27,900 are support zones and targets levels for next week if trend persists. Daily chart indicators pattern is bearish.
Traders below 29k keep sell on rise view but expect high volatility ahead so keep tight stop loss in place. Below 27,900, we may see major breakdown for prices.
Gold weekly chart technical analysis
Gold future this week tumbled by 1.2%. This week gold future hit high at 29,039 while low was at 28,452. Total 600-rupee range or 2% swing in prices and closed with loss. On weekly chart, gold is hovering around its 2 years averages of 28,400 but now with bearish divergences on indicators. On upside 29,000 is 12 and 6 month averages bearish crossover level and first resistance and above it next resistance will be at 30,400. On downside, 28,400 and then 27,200 are support zones for gold future.
Investors must watch 28,400 levels closely and if gives closing below it on price action and volume then must exit from gold or sit on short side. Ahead I expect high volatility in precious metals prices on global turmoil’s and rupee up downs.