Richard Perry
Independent Analyst
Gold
Today’s session could be a very important one. Price action has turned the positive outlook sour in recent weeks. The dominance of strong negative candlesticks is overpowering the attempted recoveries. This is reflected in the consistent failing of momentum as daily RSI, MACD and Stochastics track a path lower. Yesterday’s latest rebound brings the market to another near term crossroads. Since topping out at $1764, the rebound candlesticks have been treated as another chance to sell as the market sets towards a test of the medium term range lows $1660/$1670. Will this latest bounce be once more treated as another selling opportunity? The signals look worrying on the hourly chart this morning. The hourly RSI is again faltering around the 60 level, whilst Stochastics are already pulling lower and MACD lines are threatening another bear cross around neutral. The bulls need to climb above the resistance band $1720/$1725 to start to change this outlook of selling into strength, however, the market now seems to be faltering around $1700 (where previously this was seen as a basis of support). Back under $1685 today would really put pressure back on $1670 support.
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