Gold extends pullback after multiple upside rejections at daily cloud top

Slobodan Drvenica Windsor Brokers

GOLD

Repeated rejections at daily Ichimoku cloud top at $1343, shaped in triple long-legged Dojis, resulted in sharp acceleration lower. Long red candle was left yesterday, marking the biggest daily fall in nearly one month. Weakness extended today to fresh one-week low at $1322 that marks between 50% and 61.8% retracement of $1306/$1343 rally and increases downside pressure.
Daily MA’s are establishing in bearish setup, Slow Stochastic reversed from overbought zone and showing room for further bearish extension.
Broken Kijun-sen line at 1327 is now reverted to initial resistance, ahead of Monday’s low at $1332.
The price still hesitates to clearly break cracked Tenkan-sen line at 1324, with close below here, needed to signal bearish extension towards $1320 (Fibo 61.8% of $1306/$1343 rally), loss of which will confirm bearish stance and open $1315 (Fibo 76.4%) and $1312 (base of thick daily cloud).

Res: 1327; 1332; 1339; 1341
Sup: 1322; 1320; 1315; 1312

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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