Gold traded higher, in fact very much higher, after the Brexit result. However, before that it made a low of $1250, very close to the level we mentioned in our last article. What a day we had in gold trading, and it might continue for a few more days/weeks.
After the result we are turning our focus again to the technical front, and we have identified a very strong reverse head and shoulders (H&S) pattern. The neckline of this H&S is around $1335, so if any day we get a strong breakout from this level, we may witness another sharp rally in gold. However, the running rising money pattern and overbought indicators could delay the scenario.
On the fundamental side, the Brexit result will surely change the view on some other major issues, like Fed rate policy and China's slowdown. All are likely to support bullion prices.
Based on the above, gold is likely to move higher in the coming days, for possible targets around $1367 and then $1470.
MCX levels -> S2(30730), S1(3140), cmp(31330), R1(31870), R2(32480).
Disclaimer: The above technical analysis is not a buy/sell recommendation.