After the strong rally in the recent past the price of Gold was trading in a well defined rising channel on its intraday charts.
As outlined in the chart above the price of Gold has now registered a breakout on closing basis from this channel on the back of strong surge in volumes and in the process it has closed at a new life time high.
This augurs well for the future price movements of the price of Gold. Thus, we believe that any dip in the prices of Gold should be used to go long.
Some of the key technical factors that add strength to the bullish argument are that, the key moving average clusters are acting as strong support for the price of gold on pullbacks and the MACD indicator has given a fresh buy signal as shown in the chart above.
We recommend traders to buy 50% on dips between Rs 23800 — Rs 23775 levels and 50% on dips to Rs 23700 -- Rs 23675 levels with a stop loss placed below Rs 23643 levels for upside targets of Rs 23925 / Rs 24000 levels expected to be achieved over the upcoming 2-3 sessions of trade.
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