Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Monday, July 4, 2011

Gold Rush Monthly Update

 Monthly Chart

The monthly charts show an Inside pattern which indicates indecision.Volumes were low showing lack of participation due to the indecisiveness.Good support exists at 1420-1308.The daily 200 ema is at 1415.So breaking 1420-1415 will be a significant blow to the bulls. However, only a decisive fall below 1308, the previous significant low,  will bring in panic selling.

The monthly oscillators continue to be in negative divergence indicating the pullback may continue.

Weekly Chart

Weekly Charts show a breakdown from a rising wedge giving a target of 1245.The wema supports come at, 50 wema-1390, 100wema-1270, 200wema -1095.Oscillators showing weakness supporting the correction.

Due to macro factors demand for gold will remain unabated. Read my post explaining this . Buying into corrections will pay off in the long run.

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Happy Trading !!
Lakshmi Ramachandran

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