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Home » Daily Technical Reports » GOLD Today Technical Report 28/03/2016

GOLD Today Technical Report 28/03/2016

Gold slid during the Asian morning Monday, falling below the support (now turned into resistance) line of 1212 (R1). Given that on Wednesday, the metal fell below 1225 (R2), the lower bound of the sideways range it had been trading since the last days of February, I still believe that the short-term outlook has turned negative. Thus, I would expect the bears to regain control at some point and aim for the round figure of 1200 (S1). Nevertheless, taking a look at our short-term momentum studies, I see signs that a minor corrective bounce could be on the cards before sellers decide to take the reins again. The RSI rebounded from near its 30 line, while the MACD, although below both its zero and trigger lines, shows signs that it could start bottoming. Switching to the daily chart, I see that the dip below the 1225 (R2) resistance level has signaled the completion of a failure swing top formation, something that corroborates my view for further declines in the foreseeable future.

GOLD 28

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