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