Chart Of The Day: Overbought RSI, failure to cross $1425/27 horizontal area can again drag Gold to sub-$1400 zone

Thu, 11 Jul 2019 13:19

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With an intermediate horizontal resistance surrounding $1425/27 limiting the Gold's up-moves, backed by overbought RSI, odds favor the yellow metal's pullback to $1408 and then to 23.6% Fibonacci retracement near $1398 during further declines. It should, however, be noted that a 3-week old ascending trend-line at $1386 could confine the bullion's additional south-run, if not then 200-bar MA near $1368 could please bears.

On the upside clearance of $1427, latest highs surrounding $1429 and 61.8% FE level of $1455 can flash on the chart. Given the Bulls' dominance beyond $1455, early-2013 tops surrounding $1485 might flash on their radar.

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