Blog post

Technical Analysis: Gold bears can keep the hopes below $1,871

Not only the failures to cross the early November lows but sustained trading below 100-SMA also suggests that the gold prices are yet to regain the previous bullish momentum. Not only that, but the yellow metal's extended weakness under 200-SMA also speaks louder of its further downside. In doing so, $1,817 and the $1,800 round-figure can offer immediate supports. However, the previous resistance line from November 09, at $1,790 now, could challenge the gold sellers afterward, if not then the odds of refreshing a five-month low below $1,764 can't be ruled out.

Meanwhile, a 100-SMA level of $1,841 precedes the horizontal area around $1,850/53 to limit the bullion's short-term upside. In a case where the quote rises past-$1,853, the 200-SMA level of $1,870 will be in the spotlight. It should, however, be noted that a clear break beyond $1,870 will invite gold bulls to attack the $1,900 threshold and regain the controls afterward.

Join us on FB and Twitter to stay updated on the latest market events.

Our awards

award1 award2 award3 award4 award5