C-GB

C-GB
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Wednesday, July 18, 2012

Gold Vulnerable Below 1600.00



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Technical Outlook and Chart Setups:
Let us focus specifically on the recent consolidating structure, as shown above. It is basically a cone structure within the down swing from 1780 levels at least. Such structures have slight tendencies to break towards the swing or trend (which is down in this case). Till the time we are within the consolidation, our strategy should be to buy the support (1540/50) and sell resistance (1590/1600). Aggressive trading should be performed only on a break on either side.
Trading Recommendations:
For now, buy the support region around 1550.00 and sell the resistance region around 1590.00. Later on, trade will be in the direction of break.

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