FxWirePro: Gold downside capped by 7- day MA, good to buy on dips
Pattern formed- Bearish Divergence (RSI and MACD). Major support - $1204 (10- day MA). Major resistance - $1220 (100- day EMA). The yellow metal has shown a minor decline till $1209 and jumped sharply from that level. Go…
Pattern formed- Bearish Divergence (RSI and MACD).
Major support - $1204 (10- day MA).
Major resistance - $1220 (100- day EMA).
The yellow metal has shown a minor decline till $1209 and jumped sharply from that level. Gold has taken support near 7- day MA and minor decline can be seen if it closes below that level. It is currently trading around $1216.41.
In the daily chart gold has formed bearish divergence in RSI and MACD, a decline till $1199 is possible.
Gold major resistance is around $1220 (100- day EMA) and any break above targets $1234/$1247 (50% retracement of $1375 and $1122) in the short term.
On the lower side, immediate support is around $1207 (7- day MA) and any indicative break below targets $1199 (10- day MA)/ $1184 (30- day EMA)/$1170 (daily Kijun-Sen)/$1159 (61.8% retracement of $1122 and $1218.94).
It is good to buy on dips around $1205 with SL around $1198 for the TP of $1220/$1234.
