Slobodan Drvenica
Windsor Brokers
GOLD
Spot gold bounced from new five-week low, posted after 1.5% fall previous day, but recovery was so far limited and stalled at $1472, maintaining firm bearish tone.
The yellow metal was hurt by fresh optimism as US and China came close to get the first phase of their trade deal done, that boosted risk appetite.
Thursday's fall came tick away from key support at $1459 (1 Oct low), loss of which would signal an end of $1459/$1519 consolidative phase and risk further weakness.
Break of $1459 pivot would risk test of key Fibo support at $1445 (38.2% of $1266/$1557 bull-leg).
Daily techs are in bearish setup, with gold being on track for the biggest weekly loss in two years that adds to negative outlook.
However, oversold daily stochastic warns that the price may show further hesitation to break lower and hold in extended consolidation.
Broken 100DMA ($1476) and daily cloud base ($1478) is expected to limit upticks and keep bears in play.
Res: 1472; 1476; 1478; 1482
Sup: 1465; 1459; 1453; 1445
Interested in XAU/USD 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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