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Technical Analysis: Gold pulls back to 21-day SMA following Monday's Doji

In addition to the failure to cross 23.6% Fibonacci retracement, a bearish candlestick formation also spoke for the bullion's latest pullback. However, 21-day SMA around $1565 might question the sellers ahead of pleasing them with 38.2% Fibonacci retracement level of $1548 and mid-January lows near $1535. It should also be noted that gold's declines below $1535 will find it difficult to smash a confluence of 50% Fibonacci retracement and 50-day SMA, currently around $1528.

On the upside, a sustained run-up beyond $1535 will negate the bearish candlestick formation, which in turn will escalate the last week's recovery moves to the monthly top near $1593. However, $1600 round-figure and January month high close to $1612 could keep challenging the precious metal bulls.

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