GOLD --- FOLLOW UP

On 3 June we mentioned that gold has been  given breakout from ascending triangle and it may target 33000. Now let's see what happened ?

If u observe the above chart carefully, you will note that on  7 June gold sold of sharply, but actually it tested the breakout level. And for short term trader retracement  to break out level is good buying opportunity.

To minimize risk short term trader should keep stop loss of daily close below 28750, while medium term investor should keep stop loss of weekly close below 27855.

NOTE :- Since 2004-05 gold had dream run, so this is not right time to invest, since it is in strong uptrend, someone can invest for short period with proper technical analysis and with strict stop loss.

CAUTION :- Even though gold in rupee terms given breakout from ascending triangle.If u observe the chart of gold in dollar terms given below u can realize that, after forming top around $1780 in Feb 12, it is in down trend and trying to take support around $1540. So recent appreciation in gold in rupee terms may be because of rupee depreciation. So take care while trading / buying gold.

 DISCLAIMER: This Blog is meant for sharing our trading and investment ideas only and no calls to be taken as trading / investment recommendation. Visitors please do your own research or consult your advisers for safe trading, investing.