Spot Gold: Potential Reversal Week

Published 03/20/2014, 04:12 AM
Updated 07/09/2023, 06:32 AM

Gold was expected to trade sharply lower yesterday and broke down to 1325. This week, well actually mostly tomorrow, will prove interesting because we potentially have a reversal week. I say this because if we look at the weekly charts, they have now turned bearish from quite high levels—mid 80’s, and we could not trade back above 1400. Currently, the weekly 23.6 Fib level is at 1323.

Therefore, if we can break this support we are going to see the market weaken further, leading us lower to 1305. From there we would expect to see profit taking. If sellers do take us below 1305, and at the moment there is no reason to think they won't, then we are looking at greater declines, looking at 1285/80 once more.

Any rebound higher from current levels has 1339 to 1344 as good resistance. We would expect sellers to come in at these higher levels, which will hold unless we break 1346 resistance.

Gold Technicals

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.