Slobodan Drvenica
Windsor Brokers
GOLD
Spot Gold trades near the bottom of ten-day range at 1223, following last Thursday’s upside rejection at 1270 spike high and subsequent reversal that ended in Friday’s strong bearish close.
Gold broke below strong support at 1245 (daily Ichimoku cloud top), which underpinned upside action since Apr 1.
Fresh weakness from 1270 peak, found temporary support at 1227 (lows of 19/22 Apr), where near-term base is building.
Daily studies are losing traction (5/10SMA’s are in bearish setup and broken daily Kijun-sen marks initial resistance at 1239.
However, while 1227 base holds, prolonged consolidation could be expected, with broken daily cloud top at 1245, offering solid resistance, expected to cap upside attempts, before fresh weakness.
The notion is supported by weekly red candle with long upper shadow that signals increased selling interest.
Break above daily cloud top at 1245 and Friday’s hourly consolidation top at 1252, is needed to neutralize downside threats.
Otherwise, renewed attempts below 1127 base, could spark fresh weakness and expose 1223 (14 Apr low), with short-term congestion floor at 1208 (28 Mar low), expected to come in focus on further bearish acceleration.
Res: 1239; 1245; 1252; 1257
Sup: 1230; 1227; 1223; 1214
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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