Gold Analysis: falls after reaching resistance
|"After a quick push higher right on the open, gold succumbed to some profit taking and producer selling throughout the morning."
– Alex Thorndike, MKS PAMP Group (based on Reuters)
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Pair’s Outlook
After reaching the high level of 1,219, where a combined resistance by the monthly R2 and 38.20% Fibonacci retracement level is enforced, the yellow metal retreated on Wednesday morning. In the first quarter of the day the bullion also fell below the closes support level at 1,212.87. That means that the metal might fall next to the medium term ascending channel’s lower trend line at 1,203.40. In addition, if that support level is passed, the next notable level of significance below gold will be at 1,191.73. -
Traders’ Sentiment
Traders remain slightly bullish regarding the bullion, as 52% of open SWFX trader positions are long on Wednesday. Meanwhile, 58% of trader set up orders are to buy the metal.
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