Range Markets

  • Gold picks up bids from the intraday low, stays close to the highest levels since February flashed earlier in Asia.
  • Bearish chart formation near multi-day top, downbeat MACD signals suggest pullback moves.
  • One-week-old rising trend line, $1,760 support confluence will test gold bears.

Gold reverses the latest pullback moves from multi-day top while taking rounds to $1,794 ahead of Thursday’s European session. Even so, the yellow metal stays inside a bearish chart pattern, rising wedge, on the hourly formation.

Not only the bearish formation but the downbeat MACD conditions and the commodity’s indecisive moves around the two-month high also back the odds of the pullback.

However, a clear break of $1,788 becomes necessary to confirm the wedge formation and aim for levels marked during April 14-15 around $1,750-49.

During the fall, a seven-day-old support line and an area comprising 200-HMA, respectively around $1,770 and $1,760, can offer intermediate stops.

Meanwhile, an upside clearance of $1,800 will defy the bearish chart formation, which in turn highlights late February tops near $1,816 on the gold buyer’s radar.


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