Since 12th Jan, the gold price behavior drifts in whipsaws pattern that evidences slumps, Current sentiments hovering at 21SMAs, any breach below this level likely to drag more slumps upto $1280 levels.
Bulls in bullion restrained at 78.6% Fibonacci retracements. Historically, pops up at this same resistance levels to signal slumps and rest is history.
In an interim uptrend, gold prices have almost retraced upto 78.6% from the lows of 1046.54 to the recent highs of 1295 levels in the consolidation phase, but for, this Fibonacci level has acted as a stiff resistance and the failure swings have evidenced the price drops to the current 1287 levels (refer monthly charts).
On , has occurred at 1291, 1287 and again at 1315 levels. The current prices are attempting to slide below 7SMAs, historically, it has slid at the same juncture, and selling momentum now seems to be intensifying, while both leading and lagging oscillators on intraday charts are in conformity to the selling pressures.
and curves are converging to the price drops to indicate the strong selling momentum.
While current prices on this timeframe have been sliding below DMAs , on the other hand evidences indecisiveness.
Any abrupt rallies, next strong immediate resistances are seen at 1305 and 1315 region.
For an intraday speculation, we advocate buying boundary binaries, on an intraday trading perspective, boundary binary barriers with upper strikes at 1290 and lower strikes at 1283.
The trading between these strikes likely to derive certain yields in this puzzling trend and more importantly these yields are exponential from spot movements.
For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 1290 > Fwd price > 1283).