Gold is showing its biggest 1 day drop of the year at 1150$ vs previous close at 1205$. The unit broke its one month rising channel base at 1189$ triggering trend follower liquidations of the metal. The three month mirror channel support line comes in at 1143$ followed by last week’s post Dubai sell off low of 1138$. The weekly chart is ending down after four up sessions.

This week’s pattern appears as an "inverted hammer" having reached a fresh record high or 1226.50. Friday’s price action can only be viewed as bearish with risk to a deeper correction. Now support for the gold MCX is seen at 17529 and below could see a test of 17475. Resistance is now likely to be seen at 17644, a move above could see prices testing 17705.

Trading Ideas:

GOLD TRADING RANGE IS 15250-17800.

GOLD IS SHOWED ITS BIGGEST 1 DAY DROP OF THE YEAR

SELL GOLD FEB BELOW 17540 SL 17612 TGT 17502-17480-17422-17365. MCX

GOLD IS HAVING SUPPORT AT 17520 AND RESIST AT 17640.

GOLD SPDR HOLDINGS DROPPED BY 1.52 TONNES TO SETTLE AT 1129.97 TONNES.