Gold broke through the Bearish trend line on the 7th of November. Since then, the price has risen roughly to 1825 USD. The major reason for the rise is the fall of the dollar Index DXY . Typically, December is quite bullish for Gold , which continues until the Chinese New year ( Spring festival) or 22. 01 .2023.
From a Technical point of view, there are some bearish indications:
1. Bearish Divergence between price and RSI - an early bearish indication.
2. Gold reached the 200-day moving average, usually a strong resistance level .
3. We see a bullish retracement in a primary downtrend. Eventually, the move can reach 50%, or even 61,8%, Fibonacci retracement levels. Meanwhile, If the price doesn't reach these levels and declines below 38,20 %, it will be a sign to liquidate existing positions and sell short.
From a Technical point of view, there are some bearish indications:
1. Bearish Divergence between price and RSI - an early bearish indication.
2. Gold reached the 200-day moving average, usually a strong resistance level .
3. We see a bullish retracement in a primary downtrend. Eventually, the move can reach 50%, or even 61,8%, Fibonacci retracement levels. Meanwhile, If the price doesn't reach these levels and declines below 38,20 %, it will be a sign to liquidate existing positions and sell short.