Gold prices rallied yet again yesterday and the yellow metal is trading at its highest level in the past month at $1313/14 levels at this point in writing. Believe it or not, we have several reasons to believe that this religious rally could be ending soon. First, Gold is quickly approaching fibonacci 0.786 resistance around $1314/15 levels, of the earlier drop between $1365 and $1160 levels respectively. Second, it is very close to the fibonacci 1.618 extension of the counter trend rally A-B-C, that began from $1160 levels way back from August 2018. Third, Gold might be terminating Wave E of the larger triangle consolidation, not seen here. Fourth, a bearish divergence is clearly seen on the Daily RSI (not shown here). Keeping all the above in mind, we turn bearish from between $1310/20 levels here on, ideally prices should remain below $1365 levels.
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Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.