Gold Bearish This Week, But MAs Continue to Hold As Support - Forex News by FX Leaders

Gold Bearish This Week, But MAs Continue to Hold As Support

Posted Tuesday, April 13, 2021 by
Skerdian Meta • 1 min read

Gold has been bearish since the first week of August last yer, when it reversed down from all time highs above $2,000. The price fell around $400, from the top but it seems to have formed a base down at $1,770s, where it has bounced twice from.

The bounce took place this month, after sellers failed to push the price below the previous lows at the end of March. We decided to open a sell forex signal here, since the main trend is still bearish and fundamentals don’t look too good for GOLD , now that the global economy is recovering again.

Gold reversed back down yesterday, losing around $25 cents or 250 pips, which was good for our trade here. But, the 100 SMA (green) seems to have turned into support for Gold. The price formed a small hammer candlestick previously which is a weak bullish reversing signal.

The stochastic indicator is oversold, but so far no bounce from the 100 SMA. This is a bearish sign, since buyers seem reluctant to jump in. So, we are holding on to our Gold signal, since the retrace up is also compete on the daily chart and now Gold is heading down. So, we keep the bearish bias for Gold that we mentioned in our 2021 God forecast, but the 100 SMA would have too break soon.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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