Gold’s Bearish Bias Calmed by Support Boundary


Gold is peaking across the flattened red Tenkan-no-line at 1,864 after the more than two-week decline in the 2,000-price neighborhood bounced back support zone, which extends into mid-February. The downward slopes of the simple moving averages (SMAs) support the recent downward trajectory in the commodity.

Currently, the Ichimoku lines indicate a pause in the downward moving forces, while the short-term oscillators exhibit a weak negative momentum. The MACD, in the bearish region, is holding above its red trigger line, reflecting that the recent fading in negative momentum continues. The RSI has regained a small dip but shows that negative momentum remains weak in bearish territory. Meanwhile, the stochastic oscillator is promoting a falling price in the yellow metal.

If sellers bring the price back below the red Tenkan-no-line at 1,864, low limits could start at the near support barrier of 1,842-1,851. However, diving beyond this limit may reinforce negative trends in the commodity, with sellers subsequently targeting the 1,820 mark. Ignoring the latter obstacle, the precious metal can then snowball to the 1,800 handle and the 1,786-1,792 support band slightly below.

Alternatively, if buyers reappear, a blocked upper friction may come out of the 1,878 high, the blue Kijun-no-line at 1,885 and the descending 50-period SMA at 1,890. If the price were to overcome these obstacles and rise beyond the 1,900 barrier and the Ichimoku cloud, the bulls can then challenge the key 1,915-1,921 resistance limit. If buying interest continues and the price exceeds this resistance and the approaching longer 100- and 200-period SMAs as well, the 1,936 yen downside may then try to prevent progress from reaching the 1,956-1,963 limit.

In summary, gold supports bearish bias under the SMAs and the 1,915-1,921 resistance band. A break below the 1,842-1,851 support may intensify the bearish bearing, while a climb north of the 1,900 handle is necessary to increase positive beliefs.




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