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Gold Showing Bearish Diversion

Published 01/11/2017, 05:58 AM
Updated 07/09/2023, 06:32 AM

Here is what I said about gold on 6th of January 2017. The chart from that day is reproduced below.
Gold January 6th 5 Hour Chart

As we expected, gold should stretch around our expected range of 1190-1192 to provide a better selling opportunity has been turned into reality now, as of the time of writing it has printed a high of 1190.60. Here is the latest 5 hour chart of gold with surrent situations.

Gold 5 Hour Chart

As is obvious in the chart above, RSI is in overbought territory and showing a bearish diversion, which is not good for bulls right now if the critical resistance area is not crossed. MACD has also started to show bearish diversion but still bearish crossover is not clear.

Based on these technicals, it seems right to initiate selling for the objective of support area of 1170 followed by 1162/1156 and 1145. Conversely, if 1192 is cleared then we have a good chance of 1198, followed by 1205 the main resistance area. Any breach of this region will open the gate for further advance towards 1220 followed by 1235 and 1250 but this scenario seems very unlikely right now. But anything is possible in the market so we must be ready for unlikely scenarios too. The rest is up to the market.

Resistance: 1192/1198/1205
Support: 1180/1162/1156

Latest comments

Geopolitics is driving gold. TA is just to confirm. Get rekt
I think he is right and my opinion also match with his analysis,let's see before commenting further
Lol, you haven't been accurate in any of your commodity predictions. I cant believe someone actually pays you for an opinion.
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