Gold had a very volatile day yesterday. The price remains pressured and poised to move lower as long as bulls cannot break above $1,290. Breaking above that area will open the way for $1,350. Until then, we remain bearish or neutral.
Black line – trend line resistance
Yellow area – overbought stochastic and previous tops
Gold is trading inside the Kumo on the 4-hour chart. The price has retraced 50% of the decline from $1,295 to $1,260. Initially, the price broke below the Kumo only to come back upwards and make a new short-term higher high closer to the 61.8% Fibonacci retracement. I expect more downside. $1,260 is critical support.
The weekly chart remains bullish as the price remains above the tenkan-sen (red line indicator). The stochastic and RSI are both diverging and that is why I prefer to be neutral or bearish as long as the price is below $1,290. I would be even more bearish if we break below $1,260. I continue to expect the price to back-test the weekly upper cloud boundary support.The material has been provided by InstaForex Company – www.instaforex.com
Gold had a very volatile day yesterday. The price remains pressured and poised to move lower as long as bulls cannot break above $1,290. Breaking above that area will open the way for $1,350. Until then, we remain bearish or neutral.
Black line – trend line resistance
Yellow area – overbought stochastic and previous tops
Gold is trading inside the Kumo on the 4-hour chart. The price has retraced 50% of the decline from $1,295 to $1,260. Initially, the price broke below the Kumo only to come back upwards and make a new short-term higher high closer to the 61.8% Fibonacci retracement. I expect more downside. $1,260 is critical support.
The weekly chart remains bullish as the price remains above the tenkan-sen (red line indicator). The stochastic and RSI are both diverging and that is why I prefer to be neutral or bearish as long as the price is below $1,290. I would be even more bearish if we break below $1,260. I continue to expect the price to back-test the weekly upper cloud boundary support.The material has been provided by InstaForex Company – www.instaforex.com
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