Near Term Movement of Gold

Gold, presently trading @ `20132, as on 13th Nov 2010 at 12:50PM (Hourly chart). As we can easily
locate from the given chart that prices are trading below the given simple moving averages (SMA).
SMA 8 is valuing @ ` 20116 and SMA 40 is valuing ` 20257, on the basis of which we can easily say
that for near term gold may travel in southward zone. MACD (Given negative cross over, which is
already shown in the chart above) valuing @ -66 and is travelling below the centre line “0” which is
another negative clue for the shorter term, with increase in Volatility, on the basis of which it can be
easily concluded that market is favoring negative tone.

Price chart has also given symmetrical triangle break out which has also been confirmed by negative
volume which has been shown in the chart (half circle). Triangle breakout is showing us the resistance
of ` 20400 which is giving us a clue that one can be in sell position unless that level is broken on
closing basis. We recommend selling on every top unless given level of ` 20400 is broken for the
targets of 19800/19600.

Weekly Resistance and Support level of Gold (Values in `)

Resistance Support
R1 21042 S1 19869
R2 20805 S2 19659
R3 20469 S3 19323

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