For the past few weeks gold is seeing quite unusual and remarkable trading. It was only two weeks ago that gold reached an all-time nominal high of $1,424 an ounce. This was soon corrected and gold prices fell to as low as $1,329 an ounce. By now gold resumed its uptrend, and is currently trading near $1,375 an ounce. However, there are several technical indications that gold is about to face yet another bearish correction.
• The chart below is spot gold 4-hour chart by ForexYard.
• It can be seen that since November 16 gold prices are gradually advancing, until a recent high of $1,382 an ounce.
• However, gold has failed to breach through the $1,385 level, and sees rather flat trading ever since.
• The RSI has recently reached above the 70-line, in what’s known as the “Over-Bought” section. Moreover, it is now pointing back down, indicating that a bearish correction is impending.
• Lately the MACD has completed a bearish cross, also suggesting that a downward move is likely to take place.
• Nevertheless, the Slow Stochastic continues to point up. A bearish cross of this oscillator might validate the bearish move.
• The next support levels are located at $1,367, $1,356 and $1,355.
• The next resistant levels are found at $1,380, $1,385 and $1,390.
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Yan Petters is a top analyst of market trends who specializes in the forex market. Yan has a reputation for composing highly accurate analytical reports, both technical and fundamental. Yan Petters' ground-breaking perspectives on currency trends are highly valued by his colleagues and clients and has been a featured author on a number of influential trading sites. Yan Petters is an author for the ForexYard blog
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