- Gold traded with a negative bias for the second consecutive session on Thursday, albeit has been showing some resilience near the key $1400 psychological mark.
- The mentioned handle coincides with 38.2% Fibonacci retracement level of the $1342-$1439 recent upsurge and should act as a key pivotal point for intraday traders.
Given that the commodity has already found acceptance below 100-hour SMA for the first time in over a week or so, a follow-through selling will set the stage for an extension of the recent corrective slide from multi-year tops set on Tuesday.
Meanwhile, technical indicators on the 1-hourly chart have already drifted into the bearish territory and have been losing positive momentum on the 4-hourly chart and still pointed to slightly overbought conditions on the daily chart.
The set-up clearly points to an eventual bearish breakdown, which if confirmed might turn the precious metal vulnerable to accelerate the slide towards the $1390 intermediate support (50% Fibo. level) en-route the $1382 region.
On the flip side, 100-hour SMA support breakpoint, currently near the $1410 region now seems to act as an immediate resistance and any subsequent up-move seems more likely to remain capped near 23.6% Fibo. level, around the $1415 zone.
Gold 1-hourly chart
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