GOLD Remains Vulnerable But With Caution

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FXTechstrategy.com
3172
FXTechstrategy.com  
GOLD: The commodity continues to face downside pressure but with a rejection candle printed on Friday, a recovery risk cannot be ruled out. On the downside, support comes in at the 1,250.00 level where a break will turn attention to  the 1,240.00 level. Further down, a cut through  here will open the door for a move lower towards  the 1,230.00 level. Below here if seen could  trigger further downside pressure targeting the  1,220.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Conversely, resistance resides at the 1,260.00 level where a break will aim at the  1,270.00 level. A turn above there will expose the  1,280.00 level. Further out, resistance stands at  the 1,290.00 level. All in all, GOLD looks to weaken further.

 


aaron.pips
8
aaron.pips  

If you look in to the long term trend, it is currently trading near crucial level of 1250 and if this level gets breakdown then it represent a longer term bearish picture.

After taking resistance near $1380 (which is 38.2% Fibonacci retracement level of long term trend ($1910 - $1050)), the gold prices witnessed sharp selloff recently, with gold price reaching to next crucial support level of $1,250 (which is 23.6% Fibonacci retracement level of long term trend). If this level get break down then technically we could see gold prices touching its last year’s low levels.

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