Gold has started correcting yesterday and we are sure this is due to the bailout package for Greece in European region and this is just due to exit of funds by the large hedge funds and ETF’s. But still we are sure that there is much more upside left in gold for the longer term. In the beginning of this week we saw gold trading at all time high levels. Now we are extremely bullish on gold in near term and taking a looking at the daily charts we see that gold can resume its long term bullish trend. So taking advantage of this up trend our strategy will be to buy on dips, and we will be looking for buying opportunities in gold till the price action is above the 1570 level. Daily charts suggests that price action is supported by a rising trend line, So we see further strengthening in gold in near term from current levels. Today’s trade is supported by the technical analysis and recommends us to enter buy gold positions only. Studying technical indicators like slow Stochastic, RSI and MACD suggest that the long positions are valid and are in favor of trade on daily chart and even on lower time frame charts like hourly charts we will time our entries. Trend is most likely to be bullish today.
Our recommendation on Gold : Gold technical analysis for today, we recommend to trade long on Gold above 1585 level for targets as 1596 and 1601. A protective stop loss order should be placed just under 1580 level.