Gold is rising almost daily & currently trading at $1273 at the time of writing this post. Let’s see the reasons for it & also trying to find out the major support levels of Gold.
Here is the technical chart of Gold using 90 days Simple Moving Average (SMA), Donchian Channel, Double smotthed Stochastic. I’ve used ADX candles instead of normal candlesticks.
On 6th August 2010, Gold prices closes above 90 days SMA & Donchian Channel. That gave the strong Buy signal. Generally, 90 SMS is similar to Kumo of Ichimoku cloud & Donchian Channel is similar to Kijun sen.
The action is confirmed by double smooth stochastic, which crosses & move above 20.
The result – another upward rally of Gold & currently trading at $1273.
Gold will find its first support at Donchian line which is currently around $1236 & 90 SMA denotes $1217. If the price "closes" below these 2 support levels, you can take short position, as you’ll witness correction in it.