Gold, a vacuum and all gaps will be filled.

gap should be filled, sooner or latter, see hourly chart.

You can easily see that there are 2 gaps created by gold price on hourly chart between Rs 29,450 to 29,500. First is created in its upward journey and second is recently created when gold price broke neckline of head and shoulder pattern to start downward journey. On 23rd Feb it went up creating gap and made head and shoulder pattern there. After that it opened gap down on 28th Feb. This means it takes 5 days to create head and shoulder pattern. 

There are four types of gaps, common, break away, run away and exhaustion. First gap in this chart is exhaustion gap because it happens near the end of up trend. Second gap at the starting of down trend is clearly breakaway gap. 

I used volume indicator in this chart to judge the type of gap. There is old saying that," Gap's will be filled." But we can't trade against the trend. trend is king of price movement. We will wait and watch this king of commodity (gold ). Only after completion of down trend and after clear confirmation, we will enter in to trade. There is nothing much left for positional traders in this down move. But I suggest you to include this commodity in your daily study. You will get good price for entering in bullish trade. Thank you, Jay shriram.
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Gold broke resistance of 31151 upwards & entered in bullish zone.

Gold in bullish zone

As seen in attached hourly chart gold price broke the resistance of 31151 & sustained above it. Next resistance is placed @ 31341 around. Now 31151 mark will play as support as rule of polarity. If gold break R2 it can zoom up to 31800 around.

But looking @ steam of upmove , chances are bleak that it can spike up to 31800 level. Bull power indicator is placed around 200 and maintaining itself above 0 mark.

Trade according to given levels, use sl to protect capital, wish you happy trading.

24/07/2016 , Gold buy above 31151, sell below 30669 

As stated in heading, one can go for buy if gold sustained above 31151. But looking @ moving averages and bear power, I dont think that anybody can see the price above 31151. On the other hand, if price broke the 30669 level and sustain you can see big down fall. I will never trade between these two levels, 30669 to 31151 is " no trading zone " for me. Wait for any level to breach, waiting for good level to trade is most important part of trade.

update 1, 26th july 2016

houly chart gold mcx 

  As seen in ataached chart, gold price touched R1 and returned back in no trading zone. This is the power of level's mentioned in charts. Yesterday I said that, go short below 30669 if sustained. In circle , you can see price touched exact figure and returned.

Now wait for either levels to break and only then enter in position, long or short.