Sun, Dec 04, 2022 @ 15:12 GMT
HomeContributorsTechnical AnalysisTechnical Outlook: Spot Gold – Formation Of Reversal Pattern Risks Deeper Pullback

Technical Outlook: Spot Gold – Formation Of Reversal Pattern Risks Deeper Pullback

Spot Gold price eases on fresh recovery of dollar on Tuesday and cracked initial support at $1250 (broken 50% retracement of $1296/$1204 descend).

Steep ascend from $1204 (10 July low) showed initial signal of stall as Monday’s action ended in long-legged Doji after posting fresh recovery high at $1258.

Thick daily cloud (spanned between $1255 and $1265) marks strong barrier and weighs on near-tem action, as price was unable to sustain break into cloud on Monday.

Evening Doji Star reversal pattern is forming on daily chart and needs close below $1250 for confirmation.

Slow stochastic is about to emerge from overbought territory on daily chart and boost bearish signal.

Extension below next support at $1247 (converged 55/100SMA) would increase risk of deeper pullback towards $1238 (double-Fibonacci support – Fibo 38.2% of $1204/$1258 upleg / broken Fibo 38.2% of $1296/$1204 downtrend).

Res: 1255, 1258, 1261, 1265
Sup: 1249, 1247, 1243, 1238

Windsor Brokers Ltd
Windsor Brokers Ltd
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Featured Analysis

Learn Forex Trading