Commodities
wednesday, March 16, 2011
GOLD(AT VERY CRUCIAL SUPPORT LEVELS)
GOLD in INR:
Gold closed @ 20605 on 16-03-2011. It has made a recent high of 21274 on 07/03/2011. Wave-V of 5 has played out as expected & written in my earlier view of 24/11/2010 for first target of 21700.
Wave-V has been successfully traded from bottom of 17100 levels as mentioned on my first bullish view on Gold written on 3\5\2010.
Can it be Completion of wave-V of 5?? In Gold or its just i of (V) of 5, because equality target is still at 22374 to 22650 (i.e Upper end of channel as well) as per chart attached.
So recent high of 21274 is very crucial resistance to surpass for confirmation of further up trend, but medium term momentum indicators weekly MACD is in sell & weekly KST is at trend reversal point (about to turn from buy to sell, if closed at this levels i.e-20600 or below it).
Rather then Indicators, I can say weekly Averages (20WSMA & 40 WEMA) has acted as good support for Gold so far.
It’s trading very close to 20 WSMA (i.e-20400) & also nearer to 61.8% retracement (i.e-20200) on recent rise from 19515 as on 28/01/2011. One Should book profit in Gold only if it fail to hold 20400 or 20200 (i.e- 61.8% retracement) levels.
Able to hold these levels as mentioned above will lead to further extension in wave-V of 5 for higher equality targets as mentioned above. One should closely watch out this levels for any further action on either of side.
19515 is final bullish Trend reversal level for gold.
Wave-V has been successfully traded from bottom of 17100 levels as mentioned on my first bullish view on Gold written on 3\5\2010.
Can it be Completion of wave-V of 5?? In Gold or its just i of (V) of 5, because equality target is still at 22374 to 22650 (i.e Upper end of channel as well) as per chart attached.
So recent high of 21274 is very crucial resistance to surpass for confirmation of further up trend, but medium term momentum indicators weekly MACD is in sell & weekly KST is at trend reversal point (about to turn from buy to sell, if closed at this levels i.e-20600 or below it).
Rather then Indicators, I can say weekly Averages (20WSMA & 40 WEMA) has acted as good support for Gold so far.
It’s trading very close to 20 WSMA (i.e-20400) & also nearer to 61.8% retracement (i.e-20200) on recent rise from 19515 as on 28/01/2011. One Should book profit in Gold only if it fail to hold 20400 or 20200 (i.e- 61.8% retracement) levels.
Able to hold these levels as mentioned above will lead to further extension in wave-V of 5 for higher equality targets as mentioned above. One should closely watch out this levels for any further action on either of side.
19515 is final bullish Trend reversal level for gold.