Overview:- Well yellow metal is shining with full of its brightness and spreading the brightness on every traders who have long positions in the gold & silver. Overall both the precious metals are trading in purely uptrend so in an uptrend market just buy on dips and convert every correction as accumulation opportunity, do not go for positional sell in the current market but yes aggressive traders may go for short positions but for intraday point of view. Gold is making successively higher highs and higher lows from $1250 level and presently it is trading at $1542 level the nonstop rally is indicating further buying is on the cards.
Technical Analysis: – From technical prospective we can see that an uptrend line is lying on the chart and providing full strength to the bulls. Yesterday’s trading session was also fantastic with a bullish marabuzo candlestick. The parabolic SAR dots with green color at the downside of the candles are favoring the bulls. The bullish crossover on the MACD indicator is also favoring the bullish RSI is also moving near to 70 level which is itself strengthening the bulls. The short term to intermediate term trend is up so in an uptrend market buy on dips will be profitable strategy so here some correction or profit booking can’t be ruled out.
What next:- The bulls are driving the car and it seems like they are not ready to stop. We are watching that bulls are doing their mind blowing contribution to excel the yellow metal. The way bulls are reacting it seems like there is no hope for downside,. A daily closing above $1550 level will open the way towards the $1600 and $1650 level in coming week. The $1550 level is psychological level for bulls and as long as bulls will sustain above the $1500 level bulls will receive more demand pressure. bulls are trading and sustaining above major and minor EMA & SMA lines which is providing strength to the bulls. Further buying is still awaited and it seems clearly that bulls have taken the charge now and they will not stop at early stage.
Trade idea:- Based on the chart and study above we are expecting that go for long on the gold at $1530-40 level and add further long positions till $1500 level for the target of $1600 and $1650 level with the tight stop loss of $1460 level. Odds are in favor of bulls and we will keep our bias bullish on the gold as long as $1500 level remains intact. The $1500 is the key support level followed by $1480 level whereas $1580 is key resistance level followed by $1600 level.
