Gold Price Analysis: Monthly support trendline checks bearish MACD above $1700
- Gold registers four-day losing streak.
- MACD turns bearish for the first time in a month.
- Four-week-old support line restricts immediate declines, 21-day SMA adds to the support.
- A two-week-old resistance line guards the recovery moves.
Gold prices drop to $1,704.70, down 0.16% on a day, amid the early Asian session on Wednesday. In doing so, the bullion extends the previous three-day declines while staying above the monthly support line.
Even so, the MACD turns bearish for the first time since March 24. As a result, bears will look for entry below $1,700 while targeting the 21-day SMA level of $1,679.
It should also be noted that the previous week’s low near $1,660 and the late-March top near $1,645 will be on the bears’ radars after breaking the 21-day SMA.
On the contrary, the precious metal’s pullback moves may have to clear $1,720 ahead of confronting a fortnight-long falling resistance line, currently near $1,735.
In a case where buyers manage to cross $1,735 on a daily closing basis, it’s the run-up to challenge the multi-year high near $1,748 can be witnessed.
Gold daily chart
Trend: Further downside likely
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
-THE END-