Gold has broken below the key $1,330 support level on Friday and this now serves as a resistance level. Many indicators suggest a strong downward bias especially in the long term.
On the 4 Hour chart on Tuesday, RSI is below 50 and pointing down. Stochastics are below 20 and flattened out. Price action is below MA55 and below the Ichimoku cloud.
In the past three session prices have been consolidating around the $1,325 level which is the 23.6% Fibonacci of the move from the August 28 High down to the September 18 low.
The key level to watch would be $1,313, where a breach of this level will increase the chances of a bearish extension today towards $1,305 and $1,290.
A break below $1,290 (September 18 low) will provide more confirmation of a strong downtrend. A break above the September 19 high will cancel the bearish scenario.
Gold has broken below the key $1,330 support level on Friday and this now serves as a resistance level. Many indicators suggest a strong downward bias especially in the long term.
On the 4 Hour chart on Tuesday, RSI is below 50 and pointing down. Stochastics are below 20 and flattened out. Price action is below MA55 and below the Ichimoku cloud.
In the past three session prices have been consolidating around the $1,325 level which is the 23.6% Fibonacci of the move from the August 28 High down to the September 18 low.
The key level to watch would be $1,313, where a breach of this level will increase the chances of a bearish extension today towards $1,305 and $1,290.
A break below $1,290 (September 18 low) will provide more confirmation of a strong downtrend.
A break above the September 19 high will cancel the bearish scenario.
4H GOLD Chart
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