Gold Technical Analysis: 100-day EMA keeps sellers hopeful
|- Gold prices seesaw near October low.
- Oversold RSI conditions, July month high question further declines.
- October 11 low, 21-day EMA exert downside pressure.
Although Gold prices stop further declines below October low, a sustained trading below 100-day EMA for the first time since late-May keep sellers hopeful as the metal trade around $1,460 during the Asian session on Monday.
July month high close to $1,452.50 seems to be the immediate support ahead of 38.2% Fibonacci retracement of April-September upside, at $1,445.
Should the quote continue trading southwards past-$1,445, a descending trend line since mid-August, around $1,433 and $1,412/11 area including 200-day Exponential Moving Average (EMA) and 50% Fibonacci retracement will be on bears’ radar.
Though, nearly oversold conditions of 14-bar Relative Strength Index (RSI) can pierce a 100-day EMA level of 1,464, which in turn could challenge October 11 low around $1,474.
It should, however, be noted that 21-day EMA and 23.6% Fibonacci retracement close to $1,486/88 area could keep buyers in check after $1,474.
Gold daily chart
Trend: pullback expected
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.