GOLD technical analysis | Our expectations:
Possibility for long from the current levels with SL 1225.
The price is reaching levels of horizontal support (Dynamic from the DeM Sequential / green dotted Line/ and the bottom of 12.12.2017). The breakout below 50% Fibonacci on the upward movement since the beginning of 2017 has not been confirmed yet.
DeM Sequential has counted till 9 as we have a stop hunting below the bar – suitable for taking long positions.
DeM (8) signaled for a likely reversal of the last downward trend after turning upwards below 40.
RSI – divergence in oversold zone – low bottom of price and flat bottom of indicator.
Alternative scenario: If the price breaks and stays below the horizontal support (a closed bar under the current support levels), we can expect a further drop in the price of the precious metal.
Chart: Used with permission of Bloomberg Finance L.P.
Trader Nikolay Georgiev