Gold Moves Above MAs As It Crawls Higher
Skerdian Meta • 1 min read
GOLD has been bullish during January, as tensions between US and Iran increased, followed by the coronavirus panic. The sentiment turned quite negative regarding risk, which sent commodity dollars and stock markets lower, while safe havens such as Gold were pretty bullish.
But, the panic has worn off this week and despite new cases coming up everyday, it seems that it is under some control. The sentiment improved further, as China decided to cut tariffs on US goods, which would help the global economy to some extent.
Although, we saw a retrace higher today, but it seems like the retrace might be over at the 50 SMA (yellow) on the H4 chart, as shown above. The 100 SMA (green) and the 20 SMA (grey) are providing resistance, both of which used to be support before. The price has formed a doji candlestick below those moving averages and the retrace seems complete now, so it’s likely that we see a bearish reversal from here.