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
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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