Gold Price Analysis: MACD offers bearish signal for first since November


  • Gold's MACD histogram has turned bearish for first since late November. 
  • The price chart, however, is signaling a bullish revival.

A  gold price indicator is offering a bearish signal for the first time in nearly two months. 

The MACD histogram, an indicator used to identify trend changes and gauge trend strength, has crossed below zero, confirming a bearish reversal. The indicator was last seen printing negative values on Nov. 28.

While the MACD has turned bearish, the candlestick arrangement on the daily chart is indicating the price pullback from six-year highs above $1,600 may be over. 

The metal created a big hammer-like candle with a long lower shadow on Tuesday, a sign of seller exhaustion. More importantly, the metal rose by 0.64% on the following day, validating the seller exhaustion signaled by Tuesday's candle and confirming a bullish reversal. 

Indicators tend to lag prices, therefore, traders can take the bearish reading on the MACD with a pinch of salt, especially since the price chart is flashing signs of bullish revival. 

Gold could break above immediate resistance at $1,558 and challenge the lower high at $1,563. On the downside, key support is located at $1,536. At press time, the yellow metal is trading at $1,553 per Oz. 

Daily chart

Trend: Bullish

Technical levels

XAU/USD

Overview
Today last price 1553.22
Today Daily Change -0.64
Today Daily Change % -0.04
Today daily open 1553.86
 
Trends
Daily SMA20 1531.14
Daily SMA50 1492.81
Daily SMA100 1496.79
Daily SMA200 1436.05
 
Levels
Previous Daily High 1558.15
Previous Daily Low 1548.3
Previous Weekly High 1611.3
Previous Weekly Low 1540.3
Previous Monthly High 1525.1
Previous Monthly Low 1454.05
Daily Fibonacci 38.2% 1552.06
Daily Fibonacci 61.8% 1554.39
Daily Pivot Point S1 1548.72
Daily Pivot Point S2 1543.59
Daily Pivot Point S3 1538.87
Daily Pivot Point R1 1558.57
Daily Pivot Point R2 1563.29
Daily Pivot Point R3 1568.42

 

 

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