Gold: the bulls may be starting to grow concerned [Video]
|Gold
Following yesterday’s failed upside break, the bulls may be starting to grow concerned. This failed breakout has also now turned lower this morning, and the support of what has been a five week uptrend is being tested (supports at $1548 today). For now, this is all part of a consolidation of the past two weeks, and uptrends can often be broken by consolidation without any bearish connotations. So the 38.2% Fibonacci retracement again becomes a key gauge (at $1548), especially on a closing basis. However, the momentum indicators are flashing at least an amber warning light. They are all dipping back again, and if the RSI moves decisively below 60, whilst Stochastics fall away and MACD lines pick up negative pace, this would be a bigger concern. The hourly chart shows a slightly more corrective configuration forming, but the pivot support at $1546 is holding. Resistance initially at $1560 now under yesterday’s high failure resistance at $1568.
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.