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Gold Due For A Correction

Published 03/14/2016, 11:03 AM
XAU/USD
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GC
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Gold (14.3.2016) traded higher in accordance with our expectations and snagged the $1280 mark. However strong resistance at $1280 was unbeatable.

Now gold is trading around the $1247 mark as we can see on the charts. While reaching the $1280 mark in the last few weeks gold made a rising wedge pattern just below the 161.8% fibonacci retracement level. We will be looking for a rising wedge breakout (most ideally downside) and then enter in trade.

On the fundamental side, the upcoming FOMC meeting will play an important role in gathering long term direction.

XAU/USD Daily Chart

We prefer to flog with a rising wedge breakout for the most possible support area around the $1192 mark in coming weeks.

MCX levels -> S2(28670) S1(29050) cmp(29360) R1(29710) R2(30140)

Disclaimer: The above technical analysis is not a buy / sell recommendation.

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