Chart of the Week: Gold bears lurking below daily countertrend line resistance

Bears seeking a continuation to the downside below the 21-day EMA.
The bulls are looking to the next weekly resistance zone.

Ross J Burland FXStreet

Gold remains in a consolidative area on the longer-term charts, although there are prospects of a breakout to the downside.

The following series of charts illustrates the bearish bias below the daily countertrend line.

4-hour chart

The price action has been aggressive to the upside to a critical resistance on the 4-hour time frame.

Weekly chart

From a weekly perspective, the price is headed to the next resistance level, but there is a probable cause for a move to the downside in the meantime.

Daily chart

The daily chart illustrates the resistance area and the 61.8% correction of the bearish impulse, supported by the 21-day EMA.

Should the price fail here, then the bias is to the downside.

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Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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