Gold opened the week inside of a consolidation zone

28 February, 2017

Gold opened the week inside of a consolidation zone after Friday’s rally. The upward impetus lost strength around 1260 dollars per ounce. Buyers gave up their recent gains and had to retreat on the back of profit-taking. Sellers drove the price lower and reached 1255 in the mid European session. According to 4 hours chart the price was above the moving averages which were all pointing higher. The resistance exists at 1260, the support stands at 1250 dollars per ounce.

MACD decreased which indicates the buyers’ positions weakening. The RSI indicator was near overvalued territory, favoring a move lower.

Trading recommendations

 A close below the support at 1250 could see XAU/USD extend its declines down to 1240. Nevertheless, the upward structure remained in place. The lower limit of the upward channel lies around 1240. Buyers may find fresh bids around the level.

The 1260 is a big psychological level which means that we are bound to see some thick action around it.


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