By looking at the daily technical chart we can see that gold is heading north side with double bottom price pattern however, earlier pair was heading south side with full of bearish momentum and breaking all the major and minor support levels. But from last couple of weeks we witnessed that bears denied to go down further and bulls took the charge with slow speed but today a massive bullish attempt can be seen where from starting of the day bulls did not stop and took the pair at 1622 level which was a fabulous move.
Technical Analysis:-From technical prospective we can see that a double bottom pattern has been completed in so well manner on the chart. The way bulls are reacting it seems like they are approaching the 1690 level in near term. The recent candle is bullish hammer candlestick all the major and minor EMA lines which is providing us bullish signal. A bullish crossover on the MACD indicator is favoring the bulls RSI is moving above the 50 line which is providing us bullish signal. Overall all the set up is indicating that further bullish momentum is on the cards.
What next:-.A daily closing above 1645 level will open the way towards the 1730 level and it will give us further confirmation of bullishness. Well the way bulls have snatched the bite from bear’s mouth it seems like bulls are going to rock for further sessions as pair is already trading between the crossed moving average lines. Yesterday we have witnessed a big bullish marabuzo candlestick in the form of bullish engulfing candlesticks which is providing us bullish signal.
Trade idea : Based on chart and studies above we can say that buy gold at 1635 target is 1680 and 1690 . with the stop loss of 1600.
