GOLD - USD - Gold Has More Room to Fall - 10/24/2016 (GMT)
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- Timeframe : Daily
GOLD - USD Chart
The precious metal plunged more than 6% after the aggressive sell-off from the $1.341 resistance level. The XAU/USD pair broke to the downside the descending trend line which was holding over the last three months and the descending triangle.
From the technical point of view, the metal is currently trading near the $1,257 price level after the rebound in the $1,240 - $1,250 strong support area. The next initial targets to watch are the 200-weekly SMA which coincides with the 200-daily SMA near the $1,285 region. Additionally, if the price surpasses above the aforementioned obstacles will open the door for a retest of the $1,306 resistance level which overlaps with the first resistance of the pivot points. On the other side, if we see a break below the referred zone, the price will probably challenge the next support at $1,220. On the daily chart, the price is developing below the three SMAs (50-SMA, 100-SMA and 200-SMA) while the RSI indicator has corrected oversold readings. Also, the MACD oscillator lies below both, its zero and trigger lines.
From the technical point of view, the metal is currently trading near the $1,257 price level after the rebound in the $1,240 - $1,250 strong support area. The next initial targets to watch are the 200-weekly SMA which coincides with the 200-daily SMA near the $1,285 region. Additionally, if the price surpasses above the aforementioned obstacles will open the door for a retest of the $1,306 resistance level which overlaps with the first resistance of the pivot points. On the other side, if we see a break below the referred zone, the price will probably challenge the next support at $1,220. On the daily chart, the price is developing below the three SMAs (50-SMA, 100-SMA and 200-SMA) while the RSI indicator has corrected oversold readings. Also, the MACD oscillator lies below both, its zero and trigger lines.
This member did not declare if he had a position on this financial instrument or a related financial instrument.
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