Gold tumbles inside Ichimoku cloud; bearish in the short-term.

Gold prices have reversed back down again after finding resistance at the six-year high of 1439 at the end of the preceding month.

Currently, prices are developing within the Ichimoku cloud and the red Tenkan-sen and the blue Kijun-sen lines are pointing down, suggesting more losses. The 20- and 40-simple moving averages (SMAs) posted a bearish crossover in the 4-hour chart, while the stochastic oscillator and the RSI are heading towards the oversold zone.

Further losses should see the 38.2% Fibonacci retracement level of the upward movement from 1275 to 1439 near 1376. A drop below this level would reinforce the short-term bearish sentiment and open the way towards the 50.0% Fibo region near 1357.

In the event of an upside reversal, the 1400 handle, which overlaps with the 23.6% Fibonacci mark could act as significant resistance before touching the bearish cross of the SMAs around 1408. A run above these levels would drive the yellow metal towards the 1424 hurdle, taken from the latest highs.

However, for a resumption of the last month’s bullish rally, gold prices would need to beat the six-year high of 1439.


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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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