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Eve & Adam Bottom hints a rally in Gold?

Eve ADam Gold may 20

Gold on MCX headed a an intraday low of 25373 on Monday in morning session and then nicely recovered in evening session and closed above Fridays closing prices. 1 day spike near key support of 25300, qualifies as Eve and Adam double bottom formation. Stochastic has been moving in oversold territory and now trying to offload oversold reading with a bullish crossover under oversold line. Now bulls eyes will remain at 27450 and sustained rebound above the same would result in a rally towards 29000. Areas of 25300 are likely to act as good support but in case of failure of this support decline may extend towards 23800-23500 zones. Appearance of Eve and Adam double bottom near 25300 suggests a worth buying opportunity in this commodity and one can look for longs in range between 25900-25700 as per his risk taking ability. Accumulation can be done in mini lots, traders can start buying mini lots of gold from 26000 and can add 1 more lot on every decline of 100 rupees till 25400 zones for targeting around 27400-29000 within 1-3 months.

Recommendation: traders can look for buying opportunities in this commodity around 25900-25700 with a stop loss below 25300 for targeting 27000-29000 in a time frame of 1-3 months.

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