- Four hour chart shows price trending down below the cloud.
- Now most of the consolidations that happen from here will act as continuation patterns until crucial resistance levels are broken.
- One such level shown in daily chart is 1.3836, This level will act as resistance. Price has to close above this level to reduce bearishness of the current trend.
- Price is staying below 50 week, 200 Daily and crucial trend lines. So selling into resistance levels will be an easy trade to take.
September 13, 2011
- GOLD is moving towards the resistance line of the triangle patter shown in this post. 1792 has held for now and price may face resistance at the upper resistance line of this triangle pattern. Price should hit 1850 levels for this move.
- Correction was stopped at 1792. This level was discussed in the last update on gold. For the short term gold bears this level should be taken out for a decent correction to happen.
- If price sustains above this level then the dotted resistance line will be broken and price may move towards the major resistance line.
- GOLD SUPPORT AND RESISTANCE LEVELS
- Hour of nifty futures has formed the left shoulder and head.
- Right shoulder will be formed if NF moves towards 5072 levels and start moving down.
- Hours closing above 5072 may invalidate this pattern and a bigger up move may follow.
- Before that price should close the gap which will be completed at 5042 NF.