June 26 , 2018
By observing the daily technical chart we can observe that yellow metal which is known as safe heaven investment is itself not in a safe zone as it is trading below all the major and minor EMA lines. It seems like 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 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.
On Friday a hammer candlestick has been formed which is a bullish indicator or trend reversal signal but all in vain as yesterday again we have seen bearish momentum and seems like bulls snatched the bite from bull’s mouth.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 1250 is immediate support level followed by 1225 level whereas 1300 level is immediate resistance level followed by 1320.