Gold bearish structure remains in focus; slips below 23.6% Fibonacci retracement level.
Gold is posting a bearish day after finding resistance at the 40-simple moving average in the 4-hour chart. Moreover, the price dropped below the 23.6% Fibonacci retracement level at 1317.80 of the down-leg from 1366 to 1303, endorsing the scenario for further losses.
Looking at the 4-hour chart, the Relative Strength Index (RSI) is sloping to the downside in the negative territory, while the MACD oscillator created a bearish cross within its moving averages below the zero line, signaling the downside movement is continuing.
The bearish phase remains in play especially if gold price continues to trade below the 23.6% Fibonacci mark and the next immediate support stands at 1313. Further decline could open the door for the 1307 barrier taken from the low on February 8. Falling below this area could see the 1303 support level is acting as a strong obstacle for the bears.
On the flip side, in case of a jump above the 38.2% Fibonacci level near 1327 could drive the precious metal towards the 50.0% Fibonacci barrier at 1334. Further gains could lead the way towards the 1340 significant resistance level.
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