July 3 , 2018
By analyzing the daily technical chart we can observe that yellow metal which is known as safe heaven investment against the dollar is getting weaker on day to day basis and heading towards south side as dollar is getting stronger.
On contrary gold has arrived at $1242 level which is a strong key support level on daily technical chart as it is a previous swing’s low and gold marked $1239 level yesterday with a strong bearish marabuzo candlestick. Now it’s an acid test for bears, will they break this support or not ? It’s a very crucial time because if bears break this support then they will open the way towards $1225 and 1205 level in short term on the other side if bulls take entry here then it may bounce back towards north side.
Presently It is trading below all the major and minor EMA lines. The bears are taking the charge and dominating the bulls at every nook & conrner. The way bears are reacting it seems like they are not ready to stop in early stage and approaching the $1225 level in short term which is December 2017 low.
Short term to intermediate term trend is down and in a downtrend market always sell on rise will be profitable strategy. Gold is getting downside pressure from a downtrend line which is lying on the daily chart. The odds are in favor of bears and we will keep our bias bearish as long as pair is trading below the $1300 level which is psychological level. Some correction can’t not be ruled out but that should be taken as selling opporutnity. Every rise should be converted as selling opportunity.
The situation is favourable for bears from other indicators and oscillators point of view. A bearish crossover on MACD indicator is supporting the bears and RSI is also travelling below 30 level which is favoring the bears from negative territory. The 1225 is immediate support level followed by 1205 level whereas 1300 level is immediate resistance level followed by 1320.