After crossing the 200 DAY Simple moving average in the 2nd week of January 2009, GOLD spot US has been trading above it through out. From $900 it rallied to $1900, more than 110% return during these 4 years.
Only, in the 1st week of January 2012, it breached the 200 DMA but zoomed back again to the levels of $1780.
As we see on the daily linear chart of Gold Spot US, the commodity has formed a double top below $1800 and also trading below the 200 DMA.
It is important to note that since the February 29, 2012 fall, the commodity has been trading at the lower side of the Bollinger Band and today it is breaking it to the lower side.
Also, the momentum indicators like StockRSI and William % also suggest a weakness on the daily chart. The RSI of 37.5 is also evident of selling building up. Though an intermediate support is placed at $1650, it seems as if the selling is pressure is building up and the commodity may not be able to withstand.
In terms of MCX prices, it can be said that one can create a selling position in the Gold MCX April Future which is now trading at 27600 with a strict stoploss of 28100.
The targets in MCX are worked out at 26500 / 26300 and 24900.
Sheetalpuri Goswami
Only, in the 1st week of January 2012, it breached the 200 DMA but zoomed back again to the levels of $1780.
It is important to note that since the February 29, 2012 fall, the commodity has been trading at the lower side of the Bollinger Band and today it is breaking it to the lower side.
Also, the momentum indicators like StockRSI and William % also suggest a weakness on the daily chart. The RSI of 37.5 is also evident of selling building up. Though an intermediate support is placed at $1650, it seems as if the selling is pressure is building up and the commodity may not be able to withstand.
In terms of MCX prices, it can be said that one can create a selling position in the Gold MCX April Future which is now trading at 27600 with a strict stoploss of 28100.
The targets in MCX are worked out at 26500 / 26300 and 24900.
Sheetalpuri Goswami
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