Commodities Market: Technical Outlook
September 19, 2011
R2=1855.91
R1=1831.67
PP=1797.38
S1=1773.13
S2=1738.85
On Friday, gold after making a low of 1762.59$, bounced back to close on a positive note at 1807.62$, up 16.90$. The RSI has shown improvement and the Stochastic Oscillator has generated a buy signal indicating that a short term upward movement is likely targeting the 14-DMA standing 1845$. While the short term moving average (14-DMA) has taken a downturn and the MACD has maintained its declining trend suggesting that the trend still appears to be bearish.I therefore suggest investors to view any upside as an opportunity to ‘Sell’, keeping stoploss above 1845$. The support and resistance are lined up at 1786.29$ and 1826.75$, respectively.
Fundamental:
Gold rose 0.7% on Monday, extending the previous session's 1.2-percent rise, as investors worried about euro zone's debt crisis sought safe haven in bullion, while sluggish U.S. consumer sentiment data lent support. The European Union reached a deal on Friday to toughen its budget rules, in a bid to restore some market confidence in euro zone public finances and prevent another sovereign debt crisis.
Gold rose 0.7% on Monday, extending the previous session's 1.2-percent rise, as investors worried about euro zone's debt crisis sought safe haven in bullion, while sluggish U.S. consumer sentiment data lent support. The European Union reached a deal on Friday to toughen its budget rules, in a bid to restore some market confidence in euro zone public finances and prevent another sovereign debt crisis.
By
M.Zohaib Gadit
Forex Trading Consultant
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