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Denis Sergienko • 2020-09-28

Technical Analysis: Strong support confluence around $1,850/45 probe Gold bears

Technical Analysis: Strong support confluence around $1,850/45 probe Gold bears

Gold prices keep Friday's losses while taking rounds to $1,855 during the early Monday. Although clear trading below August month's low of $1,862.88 keeps the sellers hopeful, a confluence of 100-day SMA and an ascending trend line from April question the bullion bears. The strong support around $1,850/45 also takes clues from the oversold RSI conditions to challenge the metal's further weakness. Though, a daily closing below $1,845 will give a free hand to the sellers targeting the $1,800 threshold and the May month's high near $1,765.

Meanwhile, any bounce from the current levels can be considered ephemeral unless crossing $1,875 on a daily closing. Even so, the late-August low close to $1,902 and a joint of 50-day SMA as well as a falling trend line from August 07, currently near $1,942/45, become the tough nuts to crack for the gold buyers before retaking the controls.

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