Gold technical analysis courtesy of Cantor Index

1 mins. to read

Drilling down to the Daily chart we can see how following the sell-off through to May the price had rallied back to the February 2012 highs, a full 100% retracement.  Since then it has posted a bearish trading range, red region, and has once again moved back in to the retracement levels highlighted, red lines. The price has found some support off this area in recent weeks, and also has found support off the more medium term bullish trend line, lower black line. 

So for the moment the near term moves look to be a bullish near term leg within a bearish trading range, as a result risk/reward on buying here may not be that favourable. Moves back above $1690 would open up another full retracement  back to $1790. But we would want to see the current bearish trading range to be negated before turning more outright bullish. 

So in the near term gold has found support from major retracement and trend support areas, but it remains within a bearish phase. Moves through the $1715 area needed to create more definitive buy on strength signals, while any failure to break through the 1700-1710 area would be attractive for short sellers looking for the bearish range to continue.

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