Gold Price Is Looking For A Strong Support Point

London (Sept 15)  The yellow metal closed on September 14th in green, after five consecutive days of bearish moves. On September 7th, the metal made a double top, which is a bearish insight. Gold is moving within a channel from early July 2016 and strained various times to break the lower and upper trend-line of the channel.

Technically, the metal is still showing bearish behavior. The price is in between the 50ema and 100ema, which will be a struggle for the metal to get a clear move. 50ema has come above the price and is forming a barrier for the metal to take an upward move.

The next strong support point will be $1,304.14, which has acted as a solid support/resistance point before also. The daily and weekly charts exhibit the weakness of the metal by price movement and technical studies.

The Fibonacci 38.2% ($1,308.15) will be the next stop point for gold and it almost coincides with the strong support point ($1,304.14), hence it’s a confluence.

A close below $1,313.73 will confirm the bearish move of gold. MACD and the momentum oscillator are supporting the bearish behavior on the daily and weekly charts. A bullish move on gold can be confirmed once it close above $1,332.10 and 50ema.

Source: Investing.com