Gold upside capped by 23.6% retracement, good to sell on rallies
Major resistance- $1265 (Oct 7th high).
Major intraday Support - $1250.
Gold declined sharply after making a two- week high around $1274.50 on account of higher dollar and Fed rate hike fear. It is currently trading around $1262.93.
The yellow metal has broken once again below 200- day MA and declined till $1261.30 at the time of writing.US dollar index trades higher and breaks recent high of 98.17.It is currently trading around 98.48.
On the higher side, major resistance is around $1275 (23.6% retracement of $1375.15 and $1241) and any break above confirms minor trend reversal. Any violation above targets $1277/$1284.58 (21- day MA).
The support is at $1250 and any violation below will drag the gold till $1226 (161.8% retracement of $1241 and 1264.93)/$1210.
It is good to sell on rallies around $1265-$1267 with SL around $1275 for the TP of $1250/$1241
Major intraday Support - $1250.
Gold declined sharply after making a two- week high around $1274.50 on account of higher dollar and Fed rate hike fear. It is currently trading around $1262.93.
The yellow metal has broken once again below 200- day MA and declined till $1261.30 at the time of writing.US dollar index trades higher and breaks recent high of 98.17.It is currently trading around 98.48.
On the higher side, major resistance is around $1275 (23.6% retracement of $1375.15 and $1241) and any break above confirms minor trend reversal. Any violation above targets $1277/$1284.58 (21- day MA).
The support is at $1250 and any violation below will drag the gold till $1226 (161.8% retracement of $1241 and 1264.93)/$1210.
It is good to sell on rallies around $1265-$1267 with SL around $1275 for the TP of $1250/$1241