Posted on May 8, 2015 09:13
Gold is strongly consolidated below the price level 1201, the yellow metal unable to cross this level since Monday, despite the three attempts; Bearish sentiments are greater than bullish. The yellow metal has been blocked between small and critical ranges 1209-1170, since last three weeks unable to cross these ranges. These ranges can be broken today on US NFF data at 5.30pm.
Technical Overview:
1) Simple Moving Average of 100 and 200 days are indicating strong bearish trend in h1 as well as in h4 graph and their cross over is an ideal entry level for this metal.
2) Ichimoku Cloud is indicating strong bearish trend, in h1 as well in h4 graph, tankan sen and kijun cross and senko span A is acting as a strong obstacle for this metal in h4 as well as in h1 graph.
Although the lagging indicators behaviour is strong bearish but the yellow metal is strongly supported above the price level 1170, Low side of the range of previous week. The yellow metal is likely to find support near 1170 and resistance near 1191 and daily pivot point is 1185.