October 20, 2011,Gold: Next round begins

As can be observed from the daily chart, after a sharp fall, Gold entered into a consolidation phase. In terms of price pattern, it formed a triangle. The pattern terminated at a falling trendline. From there Gold has started a fresh move on the downside. The daily momentum indicator has completed a pullback cycle and is ready for a new cycle down. In the south, the yellow metal is expected to test the low of Rs24992. Once that is broken, the 61.8% retracement mark ie Rs24350 would be the subsequent target. On the flip side, Gold is unlikely to surpass the swing high of Rs27008