As per our technical view Gold prices sustained above $1240(28250) and have taken strong support. It is just beginning to start forward rally to reach $1275-$1300,(28880- 29400). This is a result of the cross over moving average where the Long term 100-day moving average of gold prices crosses above the Short term 50-day moving average as seen in the chart. This indicates a bullish momentum. Buy signal is given at $1251(28500). On such occasions, the moving average crossover system can be an effective strategy that can be adopted.
Gold prices uptrend pressure will exist at $1275-1283(28750-28850) and the support is seen today at $1257(28600).
WTI Crude Oil prices touched higher but were unable to hold there with the upward slope resistance line appearing at $49.70(3200). As a result, market direction travels towards resistance area.
But without making much noise and with a crawling movement it would move towards upper slope line at $ 49.75(3200) which will be a triggering barrier place. A break above and close of a daily candle will lead to $ 52(3330) above there.
I have been analysing that the “Ascending Broadening wedge” has replaced Broadening top pattern making swing trade from top to bottom and prices reach higher highs with a raising trend line which forms the upper boundary of the pattern.
Short term support will be inner dotted line at $47.75(3090) A break below could swing bottom to reach at $ 46.65(2960) levels with immediate effect.