Gold forms Potential Bearish Shark pattern,sell on rallies
Harmonic pattern- bearish shark pattern
Potential Reversal Zone (PRZ) - $1357
RSI- Bearish divergence
Gold 0.36% jumped almost $20 from yesterday low of $1321.31. The yellow metal is continuing its one month winning streak on account of weak U.S dollar. US dollar index -0.13% broken major support 91.75 and declined almost 100 pips from the level. The yellow metal hits high of $1343 and is currently trading around $1342.
Euro 0.06% jumped sharply after German Chancellor Angela Merkel has achieved breakthrough in forming coalition. CDU/CSU and SPD 1.45% parties reached an agreement. US CPI 0.23% rose 0.1% mom and 2.1% YOY slightly below expectations of 2.2%.
On the higher side, gold 0.36% is facing strong resistance at $1346 (88.6% fibo) and any break above will take the yellow metal till $1350/$1357.
The near term support is at $1332 (3- day EMA ) and any violation below will drag the metal to next level till $1319.50 (10-day MA)/$1313/$1305. Minor weakness below $1290. Any break below $1290 will drag the gold 0.36% till $1280/$1270.
It is good to sell on rallies around $1346-$1348 with SL around $1357 for the TP of $1332/$1325.
Potential Reversal Zone (PRZ) - $1357
RSI- Bearish divergence
Gold 0.36% jumped almost $20 from yesterday low of $1321.31. The yellow metal is continuing its one month winning streak on account of weak U.S dollar. US dollar index -0.13% broken major support 91.75 and declined almost 100 pips from the level. The yellow metal hits high of $1343 and is currently trading around $1342.
Euro 0.06% jumped sharply after German Chancellor Angela Merkel has achieved breakthrough in forming coalition. CDU/CSU and SPD 1.45% parties reached an agreement. US CPI 0.23% rose 0.1% mom and 2.1% YOY slightly below expectations of 2.2%.
On the higher side, gold 0.36% is facing strong resistance at $1346 (88.6% fibo) and any break above will take the yellow metal till $1350/$1357.
The near term support is at $1332 (3- day EMA ) and any violation below will drag the metal to next level till $1319.50 (10-day MA)/$1313/$1305. Minor weakness below $1290. Any break below $1290 will drag the gold 0.36% till $1280/$1270.
It is good to sell on rallies around $1346-$1348 with SL around $1357 for the TP of $1332/$1325.
