Slobodan Drvenica
Windsor Brokers
Spot Gold is trading within narrow range on Monday, supported by 10SMA at $1251, but with limited upside action, holding below strong 200SMA barrier at $1257.
Last Friday’s spike to fresh five-month high at $1270 was short-lived, as subsequent pullback brought the price back to $1250 zone, where it found footstep.
Friday’s strong upside rejection that formed daily candle with long upper shadow, weighs on near-term action, as the price failed to close above 200SMA for the fourth consecutive time.
Near-term studies weakened and see risk of deeper pullback on loss of 10SMA handle, as the price is losing momentum on daily chart.
Gold price may extend pullback from $1270 peak towards next strong support at $1243 (Fibo 38.2% of $1197/$1270 rally / rising 20SMA) before broader bulls re-assert.
200SMA is key and eventual close above it would generate stronger bullish signal.
Res: 1255; 1257; 1263; 1270
Sup: 1251; 1249; 1243; 1239
Interested in GOLD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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