Overview: The gold future is trading have 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 a strong under pressure between bulls and bears and tug of war is going on. The bears are not going down for the time being as $1818 level remains intact long .
Technical view: From technical view of the chart we can see a short term rounding bottom pattern is forming on hourly chart and a downtrend line also breached out on hourly chart which is providing bullish signal. The EMA is rising above the SMA is in the chart the EMA is more reactive as compare to the SMA. The bearish volatility of the market showing its negative momentum in the market . The expected support is 1800.00 followed by 1790.00 and Resistance is 1830 followed by 1840. The market is making its high highs followed by higher lows .
The RSI is above the 50 level showing overbrought in the market at the level level . The MACD indicator showing its strong sell signals as in the market.
Trade opinion: from all the above conclusion we can say that buyers can enter in the level 1818-1 , target will be 1800 , 1790 and the stop will be 1830.
