Tuesday, 29 April 2014

Gold price retreats after hitting strong resistance

Gold retreated after finding resistance at the 200-period moving average and the blue downward sloping resistance line. I change my view to neutral since the precious metal is currently testing the support of 1295 (S1), where a clear dip may see once again the 1280 (S2) bar. On the other hand, a rebound near that support would confirm a higher low and a break above the blue trend line may challenge the resistance of 1315 (R1). The RSI moved lower after hitting its 70 level, while the MACD fell below its trigger line, confirming the decelerating momentum of the yellow metal.

•Support: 1295 (S1), 1280 (S2), 1268 (S3). •Resistance: 1315 (R1), 1330 (R2), 1342 (R3)

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