Back
5 May 2016
Gold posts fourth daily loss in a row
Gold prices started the day with a positive tone, with spot advancing up to $1,286.40 an ounce amid surging trading in China. The commodity, however, retreated from the mentioned high and plunged to a fresh weekly low of $1,268.80/oz to settle around $1,276.00 an ounce by the US close.
Gold technical perspective
“The daily chart presents an increasing bearish potential as the price fell for a fourth day in-a-row, sending technical indicators further lower within positive territory and towards their mid-lines. In the same chart, the 20 SMA has lost its bullish strength and now stands flat well below the current level, while a daily ascendant trend line coming from February 10th daily low comes at 1,230.20, far below the current level and the level to break to confirm a steeper decline,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA has capped the rally and currently offers a dynamic resistance at 1,284.65, while the technical indicators have turned slightly higher, but remain below their mid-lines, maintaining the risk towards the downside.”
Support levels: 1,268.80 1,258.90 1,250.10. Resistance levels: 1,284.65 1292.30 1,297.10.
Gold technical perspective
“The daily chart presents an increasing bearish potential as the price fell for a fourth day in-a-row, sending technical indicators further lower within positive territory and towards their mid-lines. In the same chart, the 20 SMA has lost its bullish strength and now stands flat well below the current level, while a daily ascendant trend line coming from February 10th daily low comes at 1,230.20, far below the current level and the level to break to confirm a steeper decline,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA has capped the rally and currently offers a dynamic resistance at 1,284.65, while the technical indicators have turned slightly higher, but remain below their mid-lines, maintaining the risk towards the downside.”
Support levels: 1,268.80 1,258.90 1,250.10. Resistance levels: 1,284.65 1292.30 1,297.10.