Technicals

Add as a preferred source on Google

Gold forms bearish divergence in weekly chart, dip till $1305 is possible

Major resistance- $1358 (Jun 24th high) Major support - $1318 (3 WMA) Pattern Formed- Bearish Divergence (CCI (50) and RSI (14) in weekly chart) The yellow metal has formed a double top around $1358 and started to declin…

1 min read
Gold forms bearish divergence in weekly chart, dip till $1305 is possible
Image from the original EconoTimes article

Read the original article

  • Major resistance- $1358 (Jun 24th high)
     
  • Major support - $1318 (3 WMA)
     
  • Pattern Formed- Bearish Divergence (CCI (50) and RSI (14) in weekly chart)
     
  • The yellow metal has formed a double top around $1358 and started to decline from that level. It is currently trading at $1342.
     
  • Gold is facing strong resistance around $1358 and any break above $1358 will take the yellow metal to next level $1372/$1392 (161.8% retracement of $1358 and $1304) level in the short term.
    ​
  • On the lower side, any break below $1318 will drag the commodity down till $1305 (daily Tenkan-Sen)/$1290.
     
  • In weekly chart, gold has formed bearish divergence .So dip till $1318/$1305 is possible.
     
  • Short term bullish invalidation only below $1290.

It is good to sell on rallies around $1345-48 with SL around $1358 for the TP of $1320/$1306

 

Related articles

View all
Technicals

Major Pair Currency Score: AUDUSD Bearish

EURUSD - Levels to watch - 1.100 GBPUSD Levels to watch - 1.3180 USDCHF Levels to watch - 0.8400 USDCAD - Levels to watch - 1.4300 AUDUSD - Levels to watch - 0.7000 NZDUSD - Levels to watch - 0.5560