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 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 http://vipreetinvestments.blogspot.com/2011/04/gold-rush-is-it-time-to-rush-out.html . Buying into corrections will pay off in the long run.
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