“¢ The precious metal extended its sideways consolidative price action on Tuesday and remained confined in a narrow trading range near multi-week lows, just below 38.2% Fibo. level of the $1196-$1346 recent upsurge.
“¢ Given last week’s bearish break below 50-day SMA – for the first time since Nov. 2018, coupled with the fact that the commodity has failed to register any meaningful recovery clearly points to further near-term weakness.
“¢ Moreover, technical indicators on the daily chart have just started gaining negative momentum and further add credence to the bearish outlook, albeit traders still seemed reluctant to place aggressive bets.
“¢ Highly oversold conditions on the 4-hourly chart, especially after the overnight slump to the lowest level since Jan. 25, seemed to be the only factor leading to a subdued/range-bound price action on Tuesday.
“¢ Nevertheless, the set-up favours bearish traders and hence, attempted recovery moves might be seen as a selling opportunity for an eventual slide to $1275 en-route $1271 and 100-day SMA, around $1265.
Gold daily chart
XAU/USD
Overview:
Today Last Price: 1285.91
Today Daily change %: -0.07%
Today Daily Open: 1286.87
Trends:
Daily SMA20: 1317.04
Daily SMA50: 1301.15
Daily SMA100: 1265.44
Daily SMA200: 1236.37
Levels:
Previous Daily High: 1297.15
Previous Daily Low: 1282.98
Previous Weekly High: 1332.58
Previous Weekly Low: 1290.3
Previous Monthly High: 1346.85
Previous Monthly Low: 1300.1
Daily Fibonacci 38.2%: 1288.4
Daily Fibonacci 61.8%: 1291.74
Daily Pivot Point S1: 1280.85
Daily Pivot Point S2: 1274.84
Daily Pivot Point S3: 1266.69
Daily Pivot Point R1: 1295.02
Daily Pivot Point R2: 1303.17
Daily Pivot Point R3: 1309.18