Gold Outlook

Commodities Market: Technical Outlook

September 16, 2011 

R2=1849.04

R1=1817.36

PP=1794.89

S1=1763.20

S2=1740.74

Gold continued with its declining trend and lost 29$ to close at 1790.7$. The current formation of lower high and lower low suggests that the downward movement is likely to continue. If the decline extends further, the initial target will be at the 50-DMA standing at 1755$, which could later extend to 1703$. A bearish divergence has been created on the RSI and the Stochastic Oscillator has maintained its downward trend supporting the above view.I suggest investors to ‘Sell’ at higher levels, keeping stoploss above 1827$. The support and resistance are present at 1763.3$ and 1806.8$, respectively.

By

M.Zohaib Gadit

Forex Trading Consultant