Gold Weekly Giving Off Steam

gold bars

  • Overhead selling pressure appeared at the high of $ 1280
  • The vertical rally is a result of accumulation of shorts
  • Short covering rally may already run out of steam
  • Continued persistence at current prices does not bode well
  • A pullback to 20 WMA is potentially possible in the weeks to come
  • Pullback and reload for next long is a potential medium term strategy
  • If price breaks above $ 1283 (previous high) then $ 1350 cannot be rule out
  • Dipped lower is a much preferred scenario
  • Ideal support comes in at $ 1190 levels and $ 1150 levels but if pullback is vicious then a retest of previous low cannot be rule out
  • Fundamentally, sentiment in the precious metal complex could continue to improve on the back of market uncertainty

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