Technical Analysis – Gold 4-hourly could retest 4-month low of 1250
November 11, 2013 8:39 am
(click to enlarge)
Following a high of 1361 on October 28th – more or less in line with the time of the low in the dollar index – gold has sold off sharply, reaching the 1285 level in the latest trading.
Recently, the sharp sell-off below the 1300 level was caused by the stronger-than-expected October nonfarm payrolls figure, which has rekindled speculation of earlier tapering of Fed monetary stimulus.
Following this break, the road has more or less cleared for the retest of the 1250 4-month low, since only the 1281 level, as well as the area immediately below it between 1270 and 1280 could provide some support.
If the 1250 support does not hold, then a test of the 3 ½ year low of 1180, recorded in late June, could follow.
On the upside, any rebound could be contained by the 1315 (50-period moving average) and 1322 resistance area. The high on the 4-hourly chart is 1361, as stated previously.
The MACD indicator has a bearish interpretation, as the MACD is not only negative, but also below its red signal line. However, the MACD could be near oversold levels which could lead to a relief rally soon.
(click to enlarge)
Following a high of 1361 on October 28th – more or less in line with the time of the low in the dollar index – gold has sold off sharply, reaching the 1285 level in the latest trading.
Recently, the sharp sell-off below the 1300 level was caused by the stronger-than-expected October nonfarm payrolls figure, which has rekindled speculation of earlier tapering of Fed monetary stimulus.
Following this break, the road has more or less cleared for the retest of the 1250 4-month low, since only the 1281 level, as well as the area immediately below it between 1270 and 1280 could provide some support.
If the 1250 support does not hold, then a test of the 3 ½ year low of 1180, recorded in late June, could follow.
On the upside, any rebound could be contained by the 1315 (50-period moving average) and 1322 resistance area. The high on the 4-hourly chart is 1361, as stated previously.
The MACD indicator has a bearish interpretation, as the MACD is not only negative, but also below its red signal line. However, the MACD could be near oversold levels which could lead to a relief rally soon.
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