Overview:-It has been a fantastic opportunity for traders in gold since the starting of the year, as we can see that gold is rocking and our traders are also making a profit from this move at every level from $1830 to $1880 level we have not missed anything. we are watching that bulls are doing their mind-blowing contribution to the yellow metal, it seems like yellow metal has lost its shine but in the month of (Jan) bulls posted a remarkable journey on the daily chart which can be forgotten easily. with every level of the dip or correction the traders are advised to go for buy on the dip as the primary and secondary trend is so in an uptrend market converts every dip a buying opportunity as long as gold is trading above 1854
Technical Analysis:- We are witnessing that bulls are rocking and seem in a party mood as they have made a sharp rally from $1780 to $1853.We bulls are marking successively higher highs and higher lows by taking the support of an uptrend line major and minor EMA&SMA line which is providing strength to the bulls. We are bulls run the first phase of bulls has been completed successfully and now it’s starting the second phase of bulls. further buying is still awaited and it seems clear that bulls have taken the charge now and they will not stop loss at an early stage. bulls are driving the car and heading toward the north side with the strong bullish sentiment. Overall short term to intermediate-term trend is up so in an uptrend market buy-on dip will be a profitable strategy.
A bearish crossover and a divergence on the RSI is suggesting us that the same correction can’t be ruled out. odds are in favor of bulls and daily and weekly basis remains bullish on the yellow metal as long as the $1830 level remains intact on a daily closing basis
NOTE:-After a long bulls run a small correction is a part of the market. The trend is still bullish but waits for the reversal in the market
Trade idea:- Based on the chart and study above we would suggest that traders may go for buy around 1820-1830 for the target is 1880-1900 stop loss below 1800. Wait for entry
