Gold: Signs of profit-taking on the yellow metal [Video]
|Gold
There are signs of profit-taking on gold. We discussed the importance of yesterday’s gap at $1649 and how the bulls would respond. This gap has now been filled this morning, and if the market closes at current levels, given the strength of the negative candle it would suggest that the bull run is over, at least for now. We note the January bull run, which culminated in a -$75 unwind from the high. So far the market has given back over -$50 from the $1688 high (the highest level on gold since January 2013). Momentum indicators are reacting too. The RSI crossing back under 70 is a classic exhaustion signal for the bull run. The Stochastics bear cross (not yet confirmed) is also a sign of growing unwind. The hourly chart indicators show a renewed pullback move this morning after overnight consolidation. This is leaving resistance at $1658/$1662. The initial support is at $1623, but the first real support is at the $1611 old key breakout.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.