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Technical Analysis – Gold

GOLD 19/03/2018 | EconAlerts

Trade and WIN FXGiants | EconAlerts

Gold remains bearish as recent bounce runs out of steam.

Gold has been underperforming in the past three days, breaking back below the key level of 1312.50. When looking at the bigger picture the precious metal lacks a clear trend, while in the short-term, technical indicators support a bearish structure.

In the 4-hour chart, momentum indicators are pointing to a negative bias with the RSI indicator approaching the 30 level and the oversold zone. Moreover, stochastics are heading downwards to reach oversold levels, with the bearish cross between the %K the %D line suggesting a decline. The 20-simple moving average (SMA) has also posted a bearish crossover with the 40-SMA, following the negative bias of the price.

Further losses could see the March 1 low of 1303 acting as a major support level. A drop below the aforementioned level could reinforce the bearish movement in the short-term, opening the way towards the next key handle of 1300.

In the event of an upside reversal, a climb above the 1312.50 resistance level could open the door to the 23.6% Fibonacci retracement level of 1318 of the down-leg from 1366 to 1303. A break above this level could lead the way towards the 38.2% Fibonacci mark of 1327.

GOLD 19/03/2018 | EconAlerts


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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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