Gold- Will it continue to Glitter? A View of Where is Gold headed globally.

 

Globallly gold  has been trading near the the 1630-1590 zones for the past few weeks.

This is way of the highs created last year near 1750 odd levels.

A look at the gold long term charts and we see it is interesting poised for  move on either side at this juncture.

 

Presented below are gold weekly charts,

Forex Gold Weekly charts

 here we see two interesting facets, one gold is trending downwards in a channel movement . This channel downward move has now sustained and continued for near 20 weeks now and Gold has failed to clear that channel on either side.

The lower band of the channel now stands at 1530 and the upper band near 1635 zones.

 

At the same time there are price point supports at 1535 zones too. There were multiple historic lows created near that space. Similarly 1635 happens to be a long term retracement levels.

Conculusion and trading plan: Look for pull back trades within this zones with stops and reversal above 1640 and below 1530. A pull back strategy in the channel has been working well for near 5 months now. Similarly a break out side this zone will give heavy earning potential too and also have implications on dollar value and equity markets