June 18, 2018
In the gold both bulls and bears were in consolidation phase and no one was ready to move either side. On the Friday we have seen blood bath during the day as a big bearish marabuzo candlestick has been posted on the daily technical chart. Earlier both bulls and bears were died and investors were feeling bored but Friday’s move was a new silver lining for traders and investors. We can say that Tug of war was going on and bears were able to take it at their side i.e. South side.
Last trading session engulfed last couple of day’s trading candlesticks which are a strong bearish indication for sellers. Yesterday’s move shown the bearish pressure and we witnessed that bears are in attacking mode as Falling T-bond yields fail to help gold limit its losses.US Dollar Index looks to make its highest weekly closing of the year.
Well odds are in favor of bears. Intraday bias remains bearish on the pair and we will get further bearish confirmation once it trade and settles below $1275 level as it is a strong key support level or psychological level.
A bearish crossover on MACD indicator is favoring the bears and providing trend reversal signal for the time being and RSI is also providing bearish signal from below 50 territory. The 1310 level is immediate resistance level followed by 1325 whereas 1260 level is strong key support level followed by 1250 level.