Gold drop slowed down since the beginning of the week as we can see on the chart. The price is consolidating since yesterday and remains confined in a 13$ range between 1238.6$ support and 1251.7$ resistance line. The price action shows a smoothed downward move letting traders think about a probable reversal, however, the big picture remains bearish and the 50 periods moving average in the hourly time frame is holding firm despite being currently challenged by the price.
As long as the 50 periods MA is not taken out, the bearish trend remains intact and we can expect the price to reach the 1238.6$ support line as a first target for the day. In case of a downward acceleration it could reach 1230.3$. The second level is not to be excluded given the current deflationist pressure on the Gold price. In case of an upward breakout of this MA level, the first resistance level is located at 1251.7$ and then we see another strong resistance zone between 1257.3$ - 1260.6$.
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