Gold – Strong Rejection at Big Resistance Level

By Unknown

Sabtu, 20 Agustus 2016

Gold – Strong Rejection at Big Resistance Level

Another good start of the session saw gold rally to $ 1168.50 this morning, slightly beyond the price projection revealed on Wednesday (Gold - bull Flag broken Before FOMC Minutes)

the yellow metal ran into resistance just above here, however, with the level of 61.8 fib -. May 18 high at 20 July low - and down trendline - January 22 high - proving to be a significant barrier.

retracement level of this already suggests that we may have entered a correction phase over 5% rally Tuesday's low.

We saw a beautiful shooting star reversal candle on the hourly chart earlier today, at this level of known resistance and the dynamic drop context or divergence with the MACD histogram and stochsatic . It was an early sign of what was to come. The sell-off followed and led to a bearish consolidation phase, which now appears to have been broken.

While the daily candle is still far from over, the first signs suggesting a bearish shooting star could form here. Of course, only the finished candle account here that this could easily reverse between now and the end.

If it closes like a shooting star, it would suggest a correction or at least could follow. At this stage, the 50 and 61.8 fib levels - down 20 from July to today's highs -. Could force a glimpse of the extent of the bearishness of the market

The long-term trend remains bearish, but these levels could provide early insight whether the recent rally is the beginning of a larger correction longer term

It is interesting to note that the fundamental -. low inflation, rate hike potential for the Fed and the stronger dollar -. favorable longer-term bearish bias for

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