Technical Analysis – Gold tests nearby support; outlook discouraging
June 22, 2023 11:28 am
Gold is repeating yesterday’s test of the descending line at 1,926, which helped the price stay afloat above the three-month low of 1,934.
Sentiment remains poor in the four-hour chart. The RSI is hovering around its 30 oversold mark, increasing speculation that the price could change direction to the upside soon, but the downturn in the stochastic oscillator and the falling MACD are reducing the odds for a proper rebound as the price deviates below its simple moving averages (SMAs).
If the precious metal closes below the trendline and stretches beneath the 1,918 low, the decline could initially stall around the 1,907 handle before picking up pace towards the 1,887-1,880 zone, where the price bottomed out on March 15. Interestingly, the extension of the March-April descending line happens to be in the neighborhood. Hence, a move lower could gain an extra leg to 1,860.
In the positive scenario, where the price secures a strong foothold around 1,927, the 20- and 50-period SMAs could come first into view at 1,938 and 1,947 respectively. Should upside forces stretch above the 1,955 border too, the recovery could continue towards the 200-period SMA at 1,970. Another bounce higher could meet the tough ceiling around 1,985.
Summing up, the yellow metal could stay under pressure in the coming sessions. Failure to bounce on the 1,927 base could lead to additional bearish episodes.
Gold is repeating yesterday’s test of the descending line at 1,926, which helped the price stay afloat above the three-month low of 1,934.
Sentiment remains poor in the four-hour chart. The RSI is hovering around its 30 oversold mark, increasing speculation that the price could change direction to the upside soon, but the downturn in the stochastic oscillator and the falling MACD are reducing the odds for a proper rebound as the price deviates below its simple moving averages (SMAs).
If the precious metal closes below the trendline and stretches beneath the 1,918 low, the decline could initially stall around the 1,907 handle before picking up pace towards the 1,887-1,880 zone, where the price bottomed out on March 15. Interestingly, the extension of the March-April descending line happens to be in the neighborhood. Hence, a move lower could gain an extra leg to 1,860.
In the positive scenario, where the price secures a strong foothold around 1,927, the 20- and 50-period SMAs could come first into view at 1,938 and 1,947 respectively. Should upside forces stretch above the 1,955 border too, the recovery could continue towards the 200-period SMA at 1,970. Another bounce higher could meet the tough ceiling around 1,985.
Summing up, the yellow metal could stay under pressure in the coming sessions. Failure to bounce on the 1,927 base could lead to additional bearish episodes.
Related Posts: