Gold Technical Analysis for March 28, 2016

Gold Technical Analysis for March 28, 2016

28 March 2016, 11:01
Roberto Jacobs
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Gold Technical Analysis for March 28, 2016

Gold price has broken down the sideways channel since last week and remains in a short-term bearish trend targeting a bigger pull back towards $1,150-$1,100. Even if price reverses higher for a new higher high above $1,283, the upside is limited and a deep correction is due.


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Blue lines - sideways channel (broken)

Green line - resistance

Price is below the Kumo (cloud) in the 4 hour chart and is trending lower with bearish flag formations. A back test of the broken channel could be seen at $1,240 but I believe an important top is in and from now on any bounce should be sold as Gold is heading lower. Support is at $1,212 and resistance at $1,240. The 38% Fibonacci retracement of the $1,045 low is the most important support level in the short-term so a bigger bounce could be seen if we touch that area.


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Black lines - wedge formation

Green rectangle - important top areas

As I was bullish Gold near $1,050-$1,100 because there were bullish divergence signals in the weekly chart, now I am bearish despite the break above the Kumo (cloud) and the downward sloping wedge. Yes, Gold might have made a long-term reversal and important low at $1,045 but now it is time for this scenario to be tested. A strong pullback is expected in Gold as the upside is limited on a weekly basis. Important levels to watch for re-opening long positions are at $1,100-$1,150.


The material has been provided by InstaForex Company - www.instaforex.com



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