Gold failed to surpass a critical support level by $1’206 last week and bounced back to close above $1’218, signalling the bearish move may have lost some steam (“This week the bears appear to be still in control the weekly close below 1218.1$ support is another bearish sign. Now despite the stochastic oscillator being highly oversold, it looks like Gold will complete its bearish move to reach the lower median of the Andrew’s pitchfork which corresponds to last year low and the projection of the blue oblique too. Our view for the week remains bearish with two supports the first one will be the key psychological level found at 1200$ and the second one will be last year low of 1179.1$ where a rebound (at least a dead cat bounce) is highly probable”). Furthermore, the move towards the lower median of the Andrew’s Pitchfork formation has lost strength which could give scope for a quick rebound back towards the median line. Stochastic oscillator remains in oversold territory which supports a pullback from here in the near-term. A decisive break of $1’236 would give scope for acceleration to $1’260 and a pause of the overall bearish trend. On the downside, a drop below $1’206/00 would renew bearish strength and send the precious metal to support by $1’182.50.
Posted on: Tue, 30 Sep 2014 08:01:41 +0000
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