FxGrow Daily Technical Analysis – 21st Dec, 2017
By FxGrow Research & Analysis Team
Gold Shows Bearish Pattern Ahead of U.S GDP Data
Gold extended recovery through the week, rallying from 1252.85 low on Monday and clocking 1268.35 high on Thursday, overall $15.50 as an upward correction after dipping to 1236 on 12 Dec.
Technically, gold closed above 10-EMA and 20-EMA successfully on daily level, which indicates a bullish trend, but the upward action is seen limited and weak. Also we can notice that since gold started the recovery, it's still inside 6th and 7th daily candles borders. On H4 time frame, we can notice that gold is stuck inside a rising wedge which is almost coming to an end, should not break above 1270, and afterwards, technically gold should break downward heavily.
Fundamentally, the U.S is due to release final GDP for 2017 last quarter which should shake the market in current seasonal holidays where price action all over is dull and slow.
Spot Gold Technical Overview:
Closing price: 1265.40
Target price: 1277
Resistance levels: 1267, 1269, 1276
Support levels: 1258, 1254, 1248*
Trend: Sideways / Up
Comment: The market has muscled a short term upturn and suggests climbing moves to 1278-1281. Trade is positioned to extend rallies. A push over 1269.80+ will fuel rallies. Any corrective dips that hold the upper-mid 1250's should maintain the positive upturn. A close under 1248* is needed for a bear turnover into a secondary selling wave aimed at 1230 area.
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Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.