Golds forms bullish Cypher pattern, good to sell on rallies
Harmonic Pattern formed - Bearish Cypher pattern
Potential Reversal Zone (PRZ) - $1100
The commodity has recovered from the low of $1046 till $1088 level. Overall trend is still weak as long as resistance $1100 holds.Gold recovered on Friday after Fed Chairman Jannet Yellen said weaker growth around the globe and divergence in monetary policy of various countries will keep the US fed from raising rates quickly. It has started to retreat from the three week high.
On the lower side major support is around $1060 and break below targets $1050/$1040. Any break below $1040 will drag the commodity to new level $1000.
The minor resistance is around $1075 and break above targets $1081/1090.
It is good to sell on rallies around $1075-1080 with SL around $1100 for the TP of $1041/$1000.
Potential Reversal Zone (PRZ) - $1100
The commodity has recovered from the low of $1046 till $1088 level. Overall trend is still weak as long as resistance $1100 holds.Gold recovered on Friday after Fed Chairman Jannet Yellen said weaker growth around the globe and divergence in monetary policy of various countries will keep the US fed from raising rates quickly. It has started to retreat from the three week high.
On the lower side major support is around $1060 and break below targets $1050/$1040. Any break below $1040 will drag the commodity to new level $1000.
The minor resistance is around $1075 and break above targets $1081/1090.
It is good to sell on rallies around $1075-1080 with SL around $1100 for the TP of $1041/$1000.