After the
consolidation that gold made on the daily chart above the 55 day exponential
moving average, the precious metal accelerates its bearish momentum and
continues dropping while the US Dollar keeps rallying. The bearish trend may
continue towards the 1200 zone, which could act as support along with the 200
day exponential moving average, blue line, around the 1193 level. The current
area where the price of gold is, has been a congestion zone from where the
price may go in any direction. Therefore, the price may also try to correct to
the upside, but in that case, the 55 day EMA may act as its first resistance.
Above the 55 day EMA, purple line, its next relevant resistance is the 1300.00
level.
Looks like a day of profit taking.
ReplyDeleteExcellent analysis, very helpful!
ReplyDeleteA consequence of the rise in equity markets!
ReplyDeleteThe move to the downside will likely continue.
ReplyDeleteIt was interesting to read! Thanks a lot!
ReplyDeleteThat is a very useful analysis.
ReplyDeleteGreat article as always.
ReplyDeleteTrue, gold is testing 1200 level.
ReplyDeleteInteresting read, thank you.
ReplyDelete