Recent Technical Developments on Gold Charts

A nice bearish attempt has taken place in Gold spot after hitting a high of 1329 on October 8, 2013. Gold has witnessed a decline of 78$ form its recent top as we mentioned in our previous post and now trading at $1282. Now a falling wedge pattern is clearly visible on 240 min chart which is considered as trend reversal pattern. Current moves also qualify a wolf wave sequence which has triggered the entry at point 5 and indicating a retest to the line drawn by connective 1-4. Inverse Head and shoulder pattern is also visible on hourly chart which has neckline resistance at 1290 and any successive penetration of neckline may lead a rally of $30. Bullish divergence on MACD is indicating weakening bearish momentum and trend reversal is likely. Any Failure below 1260 may neglect our current bullish expectations and then metal would try to head towards 1180 and more down side. Whereas stability above 1260 remains bullish and recovery above 1290 would bring more charm and then commodity will try to rally towards 1320-1360 zones.

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