GOLD – strong upside rejection on Friday keeps the downside vulnerable
Spot Gold is trading within narrow range on Monday, supported by 10SMA at $1251, but with limited upside action, holding below strong 200SMA barrier at $1257.
Last Friday’s spike to fresh five-month high at $1270 was short-lived, as subsequent pullback brought the price back to $1250 zone, where it found footstep.
Friday’s strong upside rejection that formed daily candle with long upper shadow, weighs on near-term action, as the price failed to close above 200SMA for the fourth consecutive time.
Near-term studies weakened and see risk of deeper pullback on loss of 10SMA handle, as the price is losing momentum on daily chart.
Gold price may extend pullback from $1270 peak towards next strong support at $1243 (Fibo 38.2% of $1197/$1270 rally / rising 20SMA) before broader bulls re-assert.
200SMA is key and eventual close above it would generate stronger bullish signal.
Res: 1255; 1257; 1263; 1270
Sup: 1251; 1249; 1243; 1239
Interested in GOLD technicals? Check out the key levels
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.
