The precious metal needs to break the resistance of 1337 for any further hopes of an upward trend, otherwise the bias could be to the downside. The immediate support is at 1271 followed by the 1217.
Strategy in Play
Gold has bounced from its support zone on a 4 hour time frame as predicted. The support zone was given in our video analysis. The upward move which took place yesterday, is now finding its resistance at the 50 day (shown in green) moving average. However, the most important thing is that it is trading well below the downward trend line and has not broken this trend line once which confirms that the downward trend is in strong play. Moreover, the price is also trading below the 50 day (shown in green) and 100 day (shown in yellow) moving averages which further confirms the above argument.
The RSI is trading in line with the price action which means that the bias could be to the upside in the short term before the bigger trend prevails once again.
Important levels
Resistance Zone
1343-1337 Major
Support Zone
1283 -1271 Minor
by Naeem Aslam