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Technical Analysis – Gold

Gold 20/02/2018 | EconAlerts

FXG-FEB-LC-IB-728x90-EN | EconAlerts

Gold eases near 23.6% Fibonacci level; looking bearish in short-term.

Gold is heading south following the strong pullback on the 1361.40 resistance level on Friday. Having a look at the short-term timeframe the price almost hit the 23.6% Fibonacci retracement near the 1335 level of the last up-leg with the low of 1236 and the high of 1366. The bearish correction is confirmed by the MACD oscillator.

In the 4-hour chart, the MACD is falling near the zero line and below its trigger line, while the stochastic oscillator posted a bullish crossover in the oversold zone, suggesting weaker bearish movement and a possible bullish retracement.

If the precious metal drops below the 23.6% Fibonacci mark, it could hit the 1316.80 support level, which coincides with the 38.2% Fibonacci level. As a side note, the price is currently trading below the 20 and 40 simple moving averages in the short-term timeframe.

Conversely, upside moves are likely to find resistance around 1350, which overlaps with the 40-SMA at the time of writing. Moreover, a bullish rally could extend gains towards the 1361.40 resistance barrier.

Gold 20/02/2018 | EconAlerts

 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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