1-Feb-12

GOLD REPORT
A Daily Outlook on Spot Gold Analyst: Hareesh .V.
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Outlook:
Despite breaching the crucial upside of $1742, alternative moves were scarce to build up our broad bullish sentiments. For the day, early attempts are expected to attract liquidation pressure from 1742-1746, as the region look formidable for further upbeat rallies. In the mean time a push higher above 1755 would reset our broad bullish outlook and should ideally be capped at 1770. For the last few days, prices have been hovering near the upper end of daily Bollinger band ,which indicates over bought situation in the market. Similarly in RSI which is currently well above 70 is also indicating an over bought condition. As per volume oscillators, which pointing out underlying weakness in the commodity as prices observing positive bias coupled with decreased volume. Consequently for a very short term, we withdraw our broad bullish out look and reopen chances of a corrective sell off at least till 1702/1680, but trend reversal point is seen at 1660. A rebound in Euro ticked up gold yesterday, while bullion posted its biggest monthly rise since August, as lingering concerns about the growth in US. However, todays Chinese official Purchasing Managers Index topped expectations and showed a modest expansion in January. However, data due later in the day includes, Euro zone manufacturing survey and ISM index.

Trading strategies:
Key levels for the day: Upside Minor 1742-1746/1755 strong 1770/1800 Downside immediate levels: 1714/1702/1690 Strong supports 1660/1625 Sell if unable to break 1746 target 1732 with SL above 1755 Sell below 1725 target 1717. Sell below 1715 target 1702/1690. Confirm selling below 1660 target 1642/1625 SL 1690 Downside turn around point is at 1660 Buy on dips to 1728 target 1740. Buy above 1755 target 1770 followed by 1800 Buy near 1720 target 1740 with strict SL below 1700. Inability to cross above the immediate upside of 1746, intraday bias may be negative and prices may come towards the immediate support of 1726. A direct rise above 1755 would trigger fresh buying again. Page 1

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