Gold Call Today – SELL 2 lot Gold on high price between 28110 – 28140 (CMP 28090). Set SL Above 28215 for Target 28000 – 27900 (We will inform when Active)
Gold on Tuesday 9th May 2017, Gold prices down by -120 pts (-0.43%) & closed at 27971 trading range between 27951-28174 and April Comex Gold futures closed at $1227.10, division of the New York Mercantile Exchange. Gold markets reacted to a decision by President Donald Trump to dramatically fire FBI Director James Comex, fearing that the resulting political blowback could further derail efforts at tax cuts and other economic policy aims.
As the uncertainty over the French election came to end on Sunday, following Emmanuel Macron’s victory, investors have turned attention to U.S. monetary policy amid a surge in June rate hike expectations after hawkish comments from Federal Reserve officials, which prompted a rally in both U.S. Treasury yields and the dollar.
Gold prices attempted to move higher at 28177 during the trading session but were unsuccessful, running into resistance at the breakdown level that was generated. This led to the sentimental breakdown at 28000. The next additional support will be 27900.
We can observe dangling appearance in Gold prices now which is an indication that we are more likely to continue to witness sellers. We can read here that, only selling opportunities will be offered further. We suppose the 27900 level, as it was massively supportive on the longer-term charts.
1) We can analyse that the Daily charts in Gold Market formed “Falling Wedge Pattern”. In this pattern, the current downtrend might be extended to move 27900. We have drawn the chart picture where Gold makes downside movement which is a sloping channel to fulfill the trend line around prices.
2) Now we can visualize that the projects like Double bottom chart pattern will possibly bounce back and up move is expected to 28500 level. This is the last hope that we can consider of having a stopping place at 27900.
If it breaks support line at 27900 and closes the daily candle, then the Gold markets are certainly very sensitive to risk and today the probability for risk is at the highest level which can be experienced at 27000 level. Having broken down below here, we analyze and caution you that there is much more threat involved to the downside than anything else. It’s wise to look for the 27500-27000 level.