Gold: double top at 1235, corrective downward pressure

Carol Harmer Charmer Trading

Gold backed away from our key 1236 level yesterday only reaching 1235 and is lower this morning...Now we know the levels...They are 1226....1216 and 1210.....Now 1226 is the first 23.6 short term fib on the 60 min charts...Now the market is looking a bit oversold on these 60 min charts...and this might well be enough to see Gold rise back towards 1235/36....

Now the thing is...It has also Double Topped at 1235...and we have said all along 1236 is the level we need to break...so for me I am now a bit wary of Gold...especially as I think that the daily charts are overextended and in need of a bit more corrective pressure...

If we fail to hold 1226 then we are coming back to the 1216 support.. We know this acted as good resistance on the way up...and a 20 $ move might well be enough to ease back the overbought scenario...Now we haven't yet turned bearish on Gold...but the RSI has turned lower...and we are getting signals that perhaps all is not well....Only if we clear 1236 and stay there do we have enough momentum t break higher for 1244 and 1255...At the moment this is not looking likely...

Now if long at 1216 leave very tight stops....A break below 1216 does put more pressure to the downside and sees further weakness down to 1211 possibly the 1205 area once more...We will have a better idea what Gold will do when the US wake up....

Interested in Gold technicals? Check out the key levels

1. R3 1243.53
2. R2 1239.53
3. R1 1236.71
PP 1232.71
1. S1 1229.89
2. S2 1225.89
3. S3 1223.07

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.