Pattern formed – Cup and Handle
Gold 0.06% has formed a minor bottom around $1265 and is consolidating from that level for past two weeks. The yellow metals jumped till $1288 and is currently trading around $1280.
The near term resistance is around $1283 ( trend line joining $1288 and $1283.45) and any break above will take the commodity to next level till $1290/$1300/$1305 (Oct 16th 2017 high). The yellow metal should close above $1305 for further minor bullishness.
On the lower side, $1276 (100- 4H MA) will be acting as near term support and any break below will drag the yellow metal till $1269/$1265. Major support is around $1260.
It is good to buy above $1283 with SL around $1276 for the TP of $1294/$130.
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