Gold: Profit booking is going on, don’t get fear to buy.

It’s been fantastic opportunity for traders in gold since the starting of the year, as we can see that gold is rocking and our readers are also making profit from this move at every level from $1200 to $1535 level we have not missed anything. We are watching that bulls are doing their mind blowing contribution to excel the yellow metal, before that it seems like yellow metal has lost its shine but in the month of August bulls posted a remarkable journey on the daily chart which can’t be forgotten easily. With the every level of dip or correction the traders are advised to go for buy on dips as primary and secondary trend is so in an uptrend market converts every dip as a buying opportunity as long as gold is trading above $1400 level.

The way bulls are reacting it seems like there is no hope for downside, the highest scenario will the consolidation  phase from $1450 to $1550 level for few weeks and then the valid breakout on either side will give us new buy or sell signal. A daily closing above $1550 level will open the way towards the $1600 and $1650 level in coming week. The $1550 level is psychological level for bulls and as long as bulls will sustain above the $1500 level bulls will receive more demand pressure.

Overall we are witnessing that bulls are rocking and seems in party mood as they have made a sharp rally from $1200 to $1535. Well bulls are making successively higher highs and higher lows by taking the support of an uptrend line and bulls are trading and sustaining above major and minor EMA & SMA lines which is providing strength to the bulls.  We are catching every ride of bull’s from the starting of the Bull Run, the first phase of bulls has been completed successfully and now it’s starting of second phase of bulls run, where 3^rd leg of Elliot wave have been started which signals that $1650 and 40,000 are the upcoming targets.

Further buying is still awaited and it seems clearly that bulls have taken the charge now and they will not stop at early stage. Bulls are driving the car and heading towards north side with strong bullish sentiments. Overall short term to intermediate term trend is up so in an uptrend market buy on dips will be profitable strategy.

A bearish crossover and a divergence on the RSI is suggesting us that some correction can’t be ruled out. Odds are in favor of bulls and daily to weekly bias remains bullish on the yellow metal as long as $1450 level remains intact on daily closing basis.

Trade idea:- Based on the chart and study above we are expecting that go for long on the gold at $1480--70 level for the target of $1530 and $1550 level with the tight stop loss of $1450 level.