Gold took off at the end of July, right after the break of an important pivot 28288 and headed for a very critical resistance at 35074.
We had covered this in our older video on gold here - http://www.youtube.com/watch?v=KlOwXyi0duc
Coming to the present, Gold has since then failed to cross over this critical resistance at 35074 even after making a new life-time high. After failing to sustain at higher levels we took an exit signal at the break of support at 30491 and in the last trading week we've seen the precious metal slip further lower, recently closing at 28441.5.
We're still out of Gold & would suggest investors to stay out for a while until & unless Gold does not breach important resistance levels. Strong resistance levels for Gold lie at the recent high 35074, but more importantly at 32735.5 & 31828.5, minor resistance lies at 29385. Since the commodity is moving lower, as of now we need to look at support levels which are at 27875 & 25635. Breach of support at 27875 would not be a very good thing for the commodity; as it will weaken further & the lower support mentioned below that at 25635 is only a weak support.
To move up and continue the bull run, Gold will have to sustain above the recent closing price & well above 32735. The zone between 32735 & 27875 will act as a sideways zone & Gold will have to break above this to be ready for investors to enter in it again.
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