Commodities Market: Technical Outlook
October 07, 2011
R2=1669.60
R1=1660.82
PP=1646.20
S1=1637.42
S2=1622.80
Following its previous positive session, gold gained 12.05$ to close at 1649.97$. Currently, gold has given a break above the 15-DMA(1643) indicating that the upward movement is likely to continue, however, the 100-DMA will provide resistance at 1672$. Any rise above the 100-DMA will target 1681$ which could later extend to 1700 mark, however, any downside will be tested at 1625$ mark.I suggest investors to SELL on strength and keeping the stop loss above 100 DMA. The support and resistance are present at 1643.02$ and 1672.34$, respectively.
Fundamental:
Gold headed for its biggest weekly gain as equities regained strength after fresh efforts by Europe to resolve its debt crisis eased nagging worries about a global recession, while purchases from jewellers offered additional support. But trading was slow ahead of the release of U.S. non-farm payrolls data for September, which could show 60,000 new jobs created and unemployment rate unchanged at 9.1%.
Gold headed for its biggest weekly gain as equities regained strength after fresh efforts by Europe to resolve its debt crisis eased nagging worries about a global recession, while purchases from jewellers offered additional support. But trading was slow ahead of the release of U.S. non-farm payrolls data for September, which could show 60,000 new jobs created and unemployment rate unchanged at 9.1%.
By
M.Zohaib Gadit
Forex Trading Consultant
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