Candlestick pattern- Bearish engulfing
Gold has lost more than $35 from the high of $1324 made yesterday.The decline was due to strong dollar . US dollar recovered nearly 90 pips in previous week on declining US bond yield. The yellow metal hits low of $1286 and is currently trading around $1293.
On the lowerside,near term support is around $1281 (20- W MA) and any break below will drag to next level till $1271 (55- W EMA). Any break below $1271 will drag the yellow metal to next level till $1260.
The near term resistance is around $1300 and any break above will take the yellow metal to next level till $1308 (10- W MA)/$1312.It should break above $1323 for further bullishness.
It is good to sell on rallies around $1297-98 with SL around $1305 for the TP of $1280/$1275.
