GOLD - Correction Over ?????

CRUDE OIL fell heavily before giving the break out above Rs 2700 levels. Technically therefore, one will now wait for this level to be broken before going long. . The price is still within the 'Flag' and hence the structure still remains.

GOLD seems to be nearing the end of its correction. The recent price move has been more or less channelised.



Secondly ,it has given a +ve divergence on the RSI near the first retracement level. This should be treated significant.

A break above Rs 14600/- will give us indications that the recent low just below Rs 14000 will become a solid support area and a major stoploss for long posotions.

A close above Rs 15000 should indicate resumption of bullishness.

Happy trading!

CA Rajiv D Khatlawala
Head of Research & Training
Jhaveri Securities Ltd.
Baroda