Spot Gold – Strong bounce from Monday’s fall low sidelines downside risk

Slobodan Drvenica Windsor Brokers

GOLD

Spot Gold extended bounce from six-week low at $1236, posted after sharp fall on Monday and peaked at $1253 on Tuesday.

Fall was contained by 200SMA and subsequent reversal and close above former low at $1240, partially offset strong negative impact on Monday’s strong bearish acceleration.

Immediate downside risk has been sidelined as bounce broke above 100SMA ($1247) and 10SMA (1251) barriers, retracing so far 76.4% of Monday’s $1258/$1236 fall.
Recovery may extend for possible attack at pivotal $1258 barrier (double upside rejection / 55SMA), while the price holds above 100SMA.

However, bearish daily studies keep the downside under pressure, as daily Tenkan-sen in steep descend capped so far recovery action and maintains bearish pressure, along with descending thick 4-hr cloud.

Thin daily cloud (spanned between $1245/48) marks pivotal support, close below which would generate negative signal.

Res: 1253; 1255; 1258; 1261
Sup: 1247; 1244; 1240; 1236

Interested in GOLD technicals? Check out the key levels

1. R3 1278.36
2. R2 1268.24
3. R1 1256.28
PP 1246.16
1. S1 1234.20
2. S2 1224.08
3. S3 1212.12

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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