Gold forms bullish bat pattern, good to buy on dips
- Harmonic pattern – Bullish Bat pattern.
- Gold has been continuing its bearish trend for the past two days. The yellow metal declined almost more than $30. It hits low of $1309 at the time of writing. It is current trading around $1311.77.
- The yellow metal formed potential Bullish bat pattern and potential reversal zone only below $1305.
- On the lower side, any break below $1305 will drag the gold down till $1300/$1292. Bearish continuation only if it closes below $1292 level.
- The near term resistance is around $1322 (23.6% fib) and any break above will take the commodity till $1330/$1338 (100- 4H MA).
It is good to buy on dips around $1309-$1311 with SL around $1300 for the TP of $1325/$1330.
Source: FXWire Technicals