- Gold failed to capitalize on the previous session’s strong up-move and started retreating from over two-week tops, touched earlier during the Asian session on Thursday.
- Given the overnight bullish breakthrough a one-week-old trading range and the highest daily close since 2013, the set-up might have already turned in favour of bullish traders.
With technical indicators on hourly/daily charts still holding in the bullish territory, any subsequent slide towards the trading range resistance breakpoint – around the $1418 region, might still be seen as a buying opportunity.
The mentioned support coincides with 38.2% Fibo. level of the $1400-$1428 upswing over the past 24-hour and should now act as a key pivotal point for intraday traders, below with the metal could extend the ongoing pullback.
Any subsequent slide is likely to find some support near the $1406 horizontal zone ahead of the key $1400 psychological mark, which if broken might negate any near-term bullish bias and prompt some aggressive technical selling.
On the flip side, intraday swing higher – around the $1430 region, marks a short-term descending trend-line extending from multi-year tops and might continue to act as a stiff resistance, capping any meaningful positive move.
A convincing break through will be seen as a key trigger for bullish traders and pave the way for a further appreciating move, even beyond the $1436-38 region (multi-year tops) towards $1450 resistance zone.
Gold 1-hourly chart
-636990326296534317.png)
Share
