Overview: The gold future is trading has remained moving directionless with a tight range. It is posting higher lows and low tops over the last four weeks, forming a triangle shape that is reaching on its top. On a shorter –term basis, there could a deep pullback while the longer-term wedge remains in a play. There is being strong pressure between bulls and bears and tug of war is going on. The bears are not going down for the time being as $1890 level remains intact long. So the expected range for the day is 1890 to 1930 level.
Technical view: From the technical view of the chart we can see a short-term rounding bottom pattern is forming on the hourly chart and a downtrend line also breached out on an hourly chart which is providing the bullish signal. The EMA is rising above the SMA is in the chart the EMA is more reactive as compared to the SMA. The bullish volatility of the market showing its positive momentum in the market. The expected support is 1892.21 followed by 1880.21 and Resistance is 1930.86 followed by 1950.86. The market is making its high highs followed by higher lows.
The RSI is above the 50 levels showing bullishness in the market at the level 50.38 level. The MACD indicator showing its strong buy signals as it following the bullish momentum in the market.
Trade opinion: from all the above conclusion we can say that buyers can enter in the level 1905-04 , target will be 1925 , 1935 and the stop will be 1890.
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