Gold extends pullback after multiple upside rejections at daily cloud top
|Repeated rejections at daily Ichimoku cloud top at $1343, shaped in triple long-legged Dojis, resulted in sharp acceleration lower. Long red candle was left yesterday, marking the biggest daily fall in nearly one month. Weakness extended today to fresh one-week low at $1322 that marks between 50% and 61.8% retracement of $1306/$1343 rally and increases downside pressure.
Daily MA’s are establishing in bearish setup, Slow Stochastic reversed from overbought zone and showing room for further bearish extension.
Broken Kijun-sen line at 1327 is now reverted to initial resistance, ahead of Monday’s low at $1332.
The price still hesitates to clearly break cracked Tenkan-sen line at 1324, with close below here, needed to signal bearish extension towards $1320 (Fibo 61.8% of $1306/$1343 rally), loss of which will confirm bearish stance and open $1315 (Fibo 76.4%) and $1312 (base of thick daily cloud).
Res: 1327; 1332; 1339; 1341
Sup: 1322; 1320; 1315; 1312
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