Gold – Descending trend line intact on the monthly chart
Monthly chart
Resistance
$1311 (monthly 5-MA)
$1319 (previous month’s high)
$1330 (long-term descending trend line resistance)
Support
$1293 (monthly 100-MA + 50-MA)
$1284 (March high)
$1253-1241 (key Fibo-last month’s low)
Comments – Despite the surge in gold prices and a move above $1300 handle in the US session today, the outlook on the monthly chart remains bearish given the repeated failure around the long-term descending trend line resistance. Also note the monthly MACD shows bullish exhaustion. Watch out for a failure to hold above $1293 followed by a break below $1275 (current month low) as such a move would signal sharp sell-off.
Resistance
$1311 (monthly 5-MA)
$1319 (previous month’s high)
$1330 (long-term descending trend line resistance)
Support
$1293 (monthly 100-MA + 50-MA)
$1284 (March high)
$1253-1241 (key Fibo-last month’s low)
Comments – Despite the surge in gold prices and a move above $1300 handle in the US session today, the outlook on the monthly chart remains bearish given the repeated failure around the long-term descending trend line resistance. Also note the monthly MACD shows bullish exhaustion. Watch out for a failure to hold above $1293 followed by a break below $1275 (current month low) as such a move would signal sharp sell-off.
