Gold Update

Gold losing it's Luster over the short term.

On 4th September 2012, we mentioned that a valid breakout above 31,500 could potentially take the rally upwards till 32,850.

But remember only on a VALID BREAKOUT. which did not happen.

As evident from the daily chart above, prices rallied till 32,441 but did not had the strength which led to its downfall. The indicators and open interest clearly show that they started falling even before the fall in actual price.

This already raised the alarm that the ongoing up move could break down any time. Hence, a well aware trader would have capitalised on the opportunity and booked his profit.

Currently, price is finding support zone at 30,600. However, the important thing to be noticed is at this current level Open Interest is flat. (see the flat yellow line in the chart), indicating a state of uncertainty.

Hence, we would advise traders and investors to let this time go by and wait for the next clear trend and only then put in your money.

Wait for the opportunity because wonderful things happen when planning meets opportunity.

Wishing you all a very Happy Diwali.

Team Koyostocks.

Gold Update.

Gold moved as expected.

In our previous post dated 9th July, 2012; we recommended to buy Gold at 29,300 with the targets
31,500, placing stops at 28,900.

As evident from the daily chart above, Gold moved as anticipated.

From the current levels, a valid breakout above 31,500 can take the prices to an extended leg at the levels of about 32,850. However, the ongoing 5th wave might end here itself. Hence, one has to be very cautious to create a fresh long position.

Considering the Diwali festival in mind, history is evident that Gold prices has always shoot up around this auspicious Hindu festival. Hopefully, history might repeat itself and the ongoing 5th wave may extend a leg up to the above mentioned targets.

To summarize, be sure of a valid breakout above 31,500 and then enter into buy position placing stops at the levels of around 31,000.

Analysis by: Team Koyostocks. 
Our website: www.koyostocks.com

Gold at a crucial Juncture.

As shown in the Daily chart, it is evident that Gold is currently moving in a downward channel. Both on  Thursday and Friday, the price was unable to break the upper resistance of the channel, indicating a further leg downside till 29,300.

Further analysis prove that the on going 4th wave can retrace the prices to 29300 which is also the current price where the Gold price can find support in the channel. A breakout above the on going channel would give indication of the beginning of the 5th Wave, taking the price movement upwards, and a likely break of the previous high.

A fresh long position can be created at the levels of 29,800 on closing basis, placing stops at about 28,900 with a target of at least around 30,400. And further till 31,500. However, one can also buy around 29,300 with the same stop loss and same targets.

Putting it all together, one should wait for a valid breakout of the channel to create new long positions.

Analysis By :  Team Koyostocks.