Weekly View 03 June - 07 June

Gold price rallied last week breaking previously holding resistance 33700 (USD 1397.66), tested very close to 34326 (USD 1423.62) 38.2 % retracement level but couldn't even hold above previously mentioned 34100 (USD 1414.25) and tumbled down to 33611 (USD 1393.97) to close the week. Near term outlook remains Bearish.

The ascending trend line since the beginning of the week 20 May is now broken as well as the 33700 level. Now if the same trend line after 33700 level acts as a resistance for now, the price has no other option than to test 33387 (USD 1384.68) support.  Now, if this support gives up, then we may see the price tumble further down to 33100 (USD 1372.78), then 32650 (USD 1354.11) then 32250 (USD 1337.52) before full retracement to 31869 (USD 1321.72).

On the upside, to move the price further up, it will have to deal with immediate resistances 33700 and the previous ascending trend line support now turned resistance. Then if, it successfully and convincingly closes above 34361 (USD 1425.00), we may see further extension.

Keep an eye, Trade Happy, Trade Safe :)