July 12 , 2018
By analyzing the daily technical chart we can observe that yellow metal falling down consistanctly from $1365 to $1340 level and breached the uptrend line on the daily chart. Well presently they are at make or break level as $1237 level is a strong support level. Few days back gold arrived near these level but bounced back to $1266 level but could not sustain at that level and tumbled down to $1242 level once again.
A bearish marabuzo candlestick below the moving average line is supporting the bears and it seems like bears are pulling up their socks to move down further and we are expecting a bearish breakout of the support line. Odds are completely in favor of bears and intraday bias remains bearish on the gold as long as $1265 level remains intact. A valid breakout of $1237 level will open the way towards the $1220 and $1200 level which is a psychological level.
Gold did not got the benefit of US-China trade war however, gold is known as safe heaven investment so we were expecting some buying due to geopolitical factor. On contrary a bullish demand of dollar has created a downside pressure in the yellow metal.
The bears are taking the charge and dominating the bulls at every nook & conrner.Short term to intermediate term trend is down and in a downtrend market always sell on rise will be profitable strategy. The RSI is also supporting the bears and a bearish crossover has been occurred on the MACD indicator also which is also generting bearish reversal signal for the time being. The 1237 is immediate support level followed by 1220 level whereas 1265 level is immediate resistance level followed by 1280.