On Tuesday, the bears took control of gold, holding the price below the trend line of resistance that is turning into support, halted by last week’s decline, and towards the 200-period exponential moving average (EMA) on the hourly chart at 2,280 points. As for the technical indicator, the RSI oscillator and the stochastic oscillator have settled their decline near their previous lows in the oversold area and are looking for an upward turn. This indicates excessive bearish action that could result in an upward correction or some stability. A steadily decreasing short-term EMA indicator indicates that the negative trend may prevail in the long run. If the bears break the lower limit at the level of 2280, support could be formed in the area of 2250-2260. A step below this base could increase selling pressure and sink the path of the metal towards the 2200 level. The next turning point could be a limiting sign 2,185 out of the box. Alternatively, there could be peaks between the 20- and 50-period EMAs at 2,311 and 2,325, respectively, if there is a bounce from the 200-period EMA. A break above the descending channel at the level of 2,355 should be in a hurry and the key to a further flight back to 2,400. A prolonged run above the record value of 2,430 could hit a barrier near 2,460.
Author of the link: Tm Instaforex
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