Slobodan Drvenica
Windsor Brokers
GOLD
Spot Gold remains at the back foot and keeps focus at the downside, after bounce from fresh low at 1242 stalled at 1258, late yesterday.
Bearish setup of near-term studies and Bearish Divergence on daily RSI / MACD, maintain downside pressure, as reversed daily Slow Stochastic continues to travel south and shows more room at the downside.
Gold may extend pullback from 1279/77 double-top, to next strong support at 1235 (mid-point of 1190/1279 rally, reinforced by sideways-moving 20SMA and bull-trendline off 1190), which is seen as ideal reversal point, as overall structure remains bullish and trades in corrective mode off fresh highs.
Today’s ECB meeting is eyed, with Bank’s action according to expectations, seen as additional pressure on yellow metal.
Violation of 1235 support will signal deeper correction and open 1225 (Fibo 61.8% of 1190/1279 upleg).
At the upside, session high at 1254, marks initial resistance, followed by down-turned daily 5SMA at 1257 and hourly Ichimoku cloud (spanned between 1261 and 1264), return above which is needed to revive near-term bulls.
Res: 1250; 1254; 1257; 1261
Sup: 1242; 1235; 1224; 1215
Spot Gold remains at the back foot and keeps focus at the downside, after bounce from fresh low at 1242 stalled at 1258, late yesterday.
Bearish setup of near-term studies and Bearish Divergence on daily RSI / MACD, maintain downside pressure, as reversed daily Slow Stochastic continues to travel south and shows more room at the downside.
Gold may extend pullback from 1279/77 double-top, to next strong support at 1235 (mid-point of 1190/1279 rally, reinforced by sideways-moving 20SMA and bull-trendline off 1190), which is seen as ideal reversal point, as overall structure remains bullish and trades in corrective mode off fresh highs.
Today’s ECB meeting is eyed, with Bank’s action according to expectations, seen as additional pressure on yellow metal.
Violation of 1235 support will signal deeper correction and open 1225 (Fibo 61.8% of 1190/1279 upleg).
At the upside, session high at 1254, marks initial resistance, followed by down-turned daily 5SMA at 1257 and hourly Ichimoku cloud (spanned between 1261 and 1264), return above which is needed to revive near-term bulls.
Res: 1250; 1254; 1257; 1261
Sup: 1242; 1235; 1224; 1215
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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