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Technical Analysis – Gold has a short-term bearish bias

Gold 06/05/19 | EconAlerts

Gold finds obstacle near 23.6% Fibonacci; has a short-term bearish bias.

Gold prices are struggling below the 1285 mark, which is the 23.6% Fibonacci retracement level of the down leg from 1346.60 to 1266.29, a strong resistance during the past few weeks.

From the technical point of view, in the 4-hour chart, the stochastic oscillator is turning lower in the overbought territory, creating a bearish crossover between the %K and %D lines, while the RSI is sloping down in the positive area, suggesting a possible negative movement.

If the market reverses even lower, immediate support could come between the 40- and the 20-simple moving averages (SMA) currently at 1279 and 1276 respectively. Another downside move may retest the 1266.29 – 1265 support zone before the price touches the lower boundary of the descending channel around the 1260 barrier.

Otherwise, the yellow metal could retest the 23.6% Fibonacci (1285) before resting near the 1289 resistance. A jump above the latter would end the consolidation phase within the 1266.29 – 1289 region and violate the descending channel to the upside, opening the way towards the 38.2% Fibonacci of 1297.

In brief, the price has been developing within a downward range over the last six weeks, while in the medium-term the price remains negative as well.


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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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