Gold has failed to mark a new all-time high this week, and only reached as high as $1,423 an ounce. This has triggered a sharp bearish move, which is by now reflected in a 6,000 pips decline. Gold has already seen two failed attempts to drop below the $1,360 level, yet it currently seems that a third attempt is impending.
• The chart below is the spot gold 8-hour chart by ForexYard.
• The horizontal lines drawn on the chart represent the support\resistance levels of gold trading.
• It can be seen that after gold has failed to breach through the $1,423 resistance level, it has fallen steadily, and reached as low as $1,363 an ounce.
• Currently, a bearish cross of the Slow Stochastic indicates that another bearish session might be impending.
• In addition, the MACD continues to point down and the RSI continues to float below the 30-line, in the over-sold section. Both indicating that the bearish move still has more room to go.
• The next significant support level is placed at $1,360 an ounce. If gold falls below this level, it has the potential to reach $1,350, and afterwards $1,340 an ounce – before today’s trading ends.
• Nevertheless, in case that gold will fail to cross the $1,360 level, it might bounce back up, and reach $1,382 an ounce.
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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
Article copyrighted by Yan Petters. Content published with author's permission.
