How to Trade Gold April Contract

Gold April contract has broken longer term rising trend line on daily continuation chart and now fluctuating near support line of longer term rectangle which stands around 30700 zones. Gold bears need to show more power very soon by producing closing below 30650 zones for 2 consecutive days. Respect of 30650 may witness a recovery from current levels and a bullish attempt towards 200 days EMA, which stands at 31150 can’t be completely ruled out. 14 Periods RSI hovering near potential support of 30 and may help bulls to produce some bullish momentum. Over sold reading on stochastic may trigger higher fluctuation and may help bulls to push this metal higher towards areas of 31000. A majority of Technical indicators suggest bearishness in this metal but entering near areas of 30730-680 zones may be worth buying with a closing basis stop loss below 30600 for targeting 31000 and more. Closing below 30600 would trigger further weakness and a dip towards 30300 and then 30000 is likely.

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