Gold Technical Update
The 4H gold chart shows a market that has anchored into a bear-trend. The RSI has dipped below 30 and stayed below 60. Price action continues to make lower highs and lower lows. An important development is that the central pivot at about 1662 acted as resistance after it broke as support. This is a sign of bearish continuation in the short-term.
The daily chart shows the market crossing the central pivot, pushing the RSI reading below 40, and thus confirming that the market is still in sideways trading in the medium term. The next key support area is between 1520 and 1560 area. At these prices, and when the RSI tags 30, we may expect demand short-term to medium-term demand with a target back toward the central pivot area.
We'll follow up with the outlook on gold during the Market Intelligence Briefing on Friday 3/16 8:00ET.
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Fan Yang CMT is a forex trader, analyst, educator and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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