Geojit Comtrade`s trading strategy on Gold

Geojit Comtrade has come out with its Trading strategies on Gold.

Negative bias overshadowed prices for the last three days has detained support just above the recent swing low level of $1700-1702 region and turned higher. Rising trend channel support on discussion in the last report has already cleared but auxiliary moves were inadequate to strengthen strong selling momentum. As per the current chart formation while $1700 undisturbed, prices might look for a push higher with a high probability to test the immediate upside of $1751/1770 but likely for a dip before such up swings.  Meanwhile, consistent trades above 1752 could require opening chances of strong reaction rallies.  As per technical indicators, RSI is at neutral but volume oscillators still showing signals of underlying weakness in the counter that might be a concern for prices in its immediate bull run.

Gold strengthened in line with gains in shares and the Euro after Greece's parliament finally approved a deeply unpopular austerity bill to secure a second bailout from the EU and the IMF to avoid bankruptcy.  On Friday, gold fell to its lowest since late January as uncertainty over negotiations for Greece's bailout packages.

Trading strategies:

Key levels for the day: Upside: 1752 followed by 1770/ 1800/1840

Downside immediate levels: Immediate 1702/1690 Strong support 1660

Sell if unable to break 1752 target 1732 SL above 1773.

Sell below 1724 target 1706 SL above 1742. Sell below 1702 target 1660 SL above 1724

Sell if unable to break 1770, supports 1740/1728 with SL above 1800

Confirm selling below 1660 target 1642/1625 SL 1690. Downside turn around point is at 1660.

Buy on dips to 1726 target 1750 SL below 1718 (risky). Buy on dips to 1710 with strict SL below 1700, target 1725

Buy above 1753 target 1770 SL below 1738. Buy above 1772 target 1800. Buy above 1804 target 1840

Choppy session is expected inside the range of 1752-1700 levels with mild positive bias. A direct rise above 1752 likely be a signal of further upticks.

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