GOLD – strong upside rejection on Friday keeps the downside vulnerable
|Spot Gold is trading within narrow range on Monday, supported by 10SMA at $1251, but with limited upside action, holding below strong 200SMA barrier at $1257.
Last Friday’s spike to fresh five-month high at $1270 was short-lived, as subsequent pullback brought the price back to $1250 zone, where it found footstep.
Friday’s strong upside rejection that formed daily candle with long upper shadow, weighs on near-term action, as the price failed to close above 200SMA for the fourth consecutive time.
Near-term studies weakened and see risk of deeper pullback on loss of 10SMA handle, as the price is losing momentum on daily chart.
Gold price may extend pullback from $1270 peak towards next strong support at $1243 (Fibo 38.2% of $1197/$1270 rally / rising 20SMA) before broader bulls re-assert.
200SMA is key and eventual close above it would generate stronger bullish signal.
Res: 1255; 1257; 1263; 1270
Sup: 1251; 1249; 1243; 1239
Interested in GOLD technicals? Check out the key levels
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