Gold on MCX currently trading at 26278 it has witnessed a nice recovery after hitting a low of 25900 during recent bearish attempt. Gold had broken a descending trend line resistance on August 20, 2015 but couldn’t attract smart money and a nice sell off took place after printing a swing high at 27833. Prices were fluctuating just below 40 days EMA after forming a bullish cross over by 10 EMA during the month of August. Now 10 days EMA is staying above 40 days EMA that that qualifies a bullish trigger. Stochastic had reached in oversold territory and now it has formed a bullish cross and trying to recover from oversold territory. Once again stochastic has entered in oversold territory whereas prices are staying above 62% correction level of the swing that occurred from low of 24661 to high of 27833. This relation between price and stochastic indicator suggests a bullish divergence. Price action on chart maintains its bullish bias that was established by a bullish swing during the mont...
Rule number 1.Don't lose your money , Rule number 2.Don't ever-ever forget rule number 1.