WEEKLY GOLD TREND FOR WEEK STARTING 09th JULY

Well, again the precious metal bulls were disappointed.  As we peidicate last week Gold not able to break Monthaly resistence 1627 and start downwards from there.  Newly the short sellers maintained their superior position. Newly the metal was pressed down by the daily downtrend line that has been dominating for more than four months. But next week the true decisive battle is coming up:

At first I adjusted the elliptical resistance to the highs of last week. We can see that gold succeeded twice to spike over the elliptical resistance. Even though it was narrow, but for this resistance the signification is that it was tested more emphatically than it was the first two times. In addition last week a daily close and a daily open were exactly at the resistance. In terms of time gold remained at the resistance longer than it ever did in the past. The force of the bulls is increasing. But as expected, also in the third test gold was rejected again coming now into the phase when the decisive attack to the resistance is to be expected. The fourth test of this resistance is always the decisive one. The important Gann resistances and supports mostly break at the 4th test. That is why in the next try gold will have the highest probability of breaking this resistance finally. It’s a 70%!!

But the precondition is that on the one hand the key support angle  below the price will resist on Monday and on Tuesday on closing price basis as well. I really expect that to happen. From there the market is supposed to tackle newly the elliptical resistance breaking it in the next try. The earliest deadline for the break will be next Thursday.

But if the PRICE at the beginning of the week, i.e. a daily close below 1565.  We will see more correction till 1535 with a probability of 70%.

RECOMMENDATION (WWEKLY) : BEST BUY $ 1560-65 WITH STRICT STOP BELOW $ 1550 (CLOSING) FOR TGT $ 1610

TODAY LEVEL

RESISTANCE # 2…………. $1623.00
RESISTANCE # 1…………. $1602.00
PIVOT…………………….. .$1589.00
SUPPORT # 1……………....$1566.00
SUPPORT # 2……………....$1555.00

MCX

RESISTANCE # 2…………. INR 29900
RESISTANCE # 1…………. INR 29770
PIVOT…………………..… .INR 29650
SUPPORT # 1……………....INR 29540
SUPPORT # 2……………....INR 29420

Happy Trading

Rahul Kumar

Gold Specialist

Head

Hansraj Stocks and Commodity Consualtant

Join us : http://hansrajconsualtant.tk/

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