Gold has reached at an important juncture just before the FOMC meeting. The trading action is getting tighter with every passing day in anticipation of what would Bernanke say. If the Federal Reserve indicates a dovish outlook, then simply it would be a bullish scenario for Gold and one can eye $1410-1415 in short term. If the tone is hawkish and hint of QE tapering, the dollar will get a boost and it would weaken Gold. But that possibility looks small.
Purely on the basis of technical analysis, the bulls are looking stronger compared to the previous bounce that we witnessed back in April, 2013. Last week, it found support at or around 50-DMA and bounced from there in order to make a symmetrical triangle. The price has just broken it and found support on the triangle’s declining trend line. Also, Gold is moving in a nice upward channel which is still to be broken on the downside.
Overall for a positional long trade, BUY only above $1338 for a target of $1410-1415 OR wait for a retracement till $1315 and BUY between $1315-1295 (also important support).
Now it’s your turn…..
Feel free to share your experience and thoughts in the comments area.
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