Spot Gold Could Witness Upside Momentum

Published 06/10/2013, 07:28 AM
Updated 05/14/2017, 06:45 AM

The consecutive attempts to breach the initial resistance around 1423.00-1424.00 regions have failed again, assisting bears to draw a long black candlestick pattern on Friday as seen on the daily chart below. Negative pressures from SMA 20 and 50 may send the yellow metal lower this week. A break below 1366.00 will bring panic sell-off actions, targeting mainly 1330.00 boundaries followed by 1273.00. Ultimately, the upside momentum decreased as seen on RSI 14, reinforcing our constructive bearish overview.
Spot Gold
Support: 1373.00, 1366.00, 1338.00, 1321.00, 1300.00
Resistance: 1400.00, 1412.00, 1425.00, 1445.00, 1460.00

Based on the chart and explanations above, we believe that selling the metal below 1366.00 targeting 1274.00 and stop loss above 1425.00 could be appropriate this week.

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