Gold Price Analysis: Remains below key counter-trendline resistance
- Gold is not going down without a fight on the short-term time frames.
- The broader bias remains in the hands of the bears.
Gold is under pressure on the weekly and daily chart, but the 4-hour time frame is proving problematic to the bearish case.
The following illustrates the bearish bias in a top-down analysis:
Weekly chart
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There is an opportunity on the weekly chart to trade the next downside extension following the latest correction.
Daily chart
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The daily chart shows that the price has already broken trendline support which is now expected to act as a counter trend line resistance.
A break below the 21-day moving average would add more conviction to the bearish case.
4-hour chart
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However, the bearish outlook has not been an easy ride so far on the 4-hour time frame.
The yellow metal remains coiled in a tight range.
The price action has been unfavourable to the overall bearish outlook and is testing the bear's commitments at this juncture.
A break above the resistance structure will put the counter trendline and 21-moving average into jeopardy.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
