Technical Analysis – Gold oversold near three-week lows
January 21, 2019 11:26 amVideo
Latest News
- Technical Analysis – GBPUSD advances above descending trendline May 3, 2024
- USD experiences day X May 3, 2024
- Bitcoin licks wounds as Fed comes on the rescue – Crypto News May 3, 2024
- GBP/USD: trading plan for the US session on May 3rd (analysis of morning deals). The pound is preparing to get out of the May 3, 2024
- EUR and GBP may drop May 3, 2024
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
- EUR/USD. May 3rd. Bulls don’t give up without a fight May 3, 2024
- GBP/USD. May 3rd. Bears are counting on a strong US labor market May 3, 2024
- Market Comment – Stocks enjoy Fed-induced bounce as dollar slips ahead of NFP May 3, 2024
- Weekly Forex Outlook: 03/05/2024 – BoE and RBA decisions headline a calm week May 3, 2024
- Week Ahead – BoE and RBA decisions headline a calm week May 3, 2024
- USD/JPY: trading tips for beginners for European session on May 3 May 3, 2024
- GBP/USD: trading tips for beginners for European session on May 3 May 3, 2024
- EUR/USD: trading tips for beginners for European session on May 3 May 3, 2024
- Technical Analysis – WTI futures break below 200 day-SMA May 3, 2024
Gold dropped to a three-week low of 1,277.66 on Monday after a failed attempt to pierce the strong roof around the 1,298.47 peak last week. But the RSI and the Stochastics in the four-hour chart suggest that the downside is overstretched, and the price could rebound again as both indicators hover near oversold levels; the RSI is attached to 50, while Stochastics have posted a bullish cross below 20 and are heading north.
Moving slightly higher the price may meet resistance around 1,283 which is the 23.6% Fibonacci retracement of the rally from 1,232.79 to 1,298.47. A violation at this point could shift focus towards the 1,288 barrier, while above that the bulls may retry to break the heavy wall around the 1,298.47 top.
On the other hand, if the market continues to deteriorate, a decisive close below the January 4’s low of 1,276.50 could add more sellers into the market. However only a leg below the 50% Fibonacci of 1,265.60 would confirm that the rebound off 1,232.79 is completed and a downtrend is in progress. Prior that the 38.2% Fibonacci of 1,273.35 could also act as support.
Summarizing, gold is neutral in the short-term picture, while in the bigger picture the precious metal remains bullish as long as it holds above 1,265.60 and the 200-period moving average.
Related Posts: