Page 23 - Bullion World Volume 3 Issue 1 2023

Bullion World | Volume 3 | Issue 1 | January 2023

Technical View: Comex Gold –Continuous Futures

Comex Gold’s continuous contract – 1620. Broadly, the trend would be
has traded in channel pattern negative until prices remain below
formation since the low made in the resistance of 1905$ on a closing
May 2020 at $1671 (Point A). It has basis. A crossover above $1905
tested the high at $2089 (point B). could attract fresh buying interest
Gold has been making the lower with a possibility of moving up to
top and lower bottom patterns $2000- $2150 level could be viewed
since then. As a result, the market as a medium to long-term resistance
is expected to be choppy as we in 2023.
fluctuate between the $1600 level
on the lower side and $2000 on the
higher side. There are arguments for
both a rising wedge pattern in the For Gold the trend
Mr Rajeev Darji
short term and a channel pattern in would be negative until
the long term. Further, as seen in prices remain below the
the chart above, gold has corrected resistance of 1905$ on
from the high of 2078 (point D) a closing basis. A cross-
to 1618 (point E). At the time of over above $1905 could
writing, it was at $1847, nearing the
50% retracement resistance level attract fresh buying in-
at 1850$. If this resistance of 1850 terest with a possibility
holds on a weekly closing basis, of moving up to $2000-
then gold could reverse to move $2150 level could be
lower towards $1795. However, a viewed as a medium to
sustained break above $1850 could long-term resistance in
result in gold rising towards the
next resistance level at $1905. The 2023.
outlook for the next three-six months
remains range bound. The trend
could be decided on a breakout of
the $1795-1950 range. A sustained
break below $1795 brings into the
picture the next supports at $1700

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