Gold Price Declines to an Oversold Region, Unable to Breach $1,860 High

Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700,$1,650

Gold (XAUUSD) Long-term Trend: Bullish
Gold (XAUUSD) is in a downtrend but unable to breach $1,860 high. On January 25 uptrend; the bulls could not break the $1,860 overhead resistance as Gold was repelled. Similarly, on November 17, Gold was resisted at the Overhead resistance as it fell to the low of level $1,765. Nonetheless, Gold is falling after recent rejection as the market reaches the low of level $1,795. Sellers are likely to revisit the previous low at $1,765.

Daily Chart Indicators Reading:
Gold has fallen to level 42 of the Relative Strength Index for period 14. It indicates that Gold is in the downtrend zone and it is capable of a further downward move. The 21-day SMA and the 50-day SMA are sloping sideways indicating a sideways trend.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4 hour chart, the Gold price was earlier an uptrend. The uptrend got stuck at level 1850. After retesting the overhead resistance on two occasions, the downtrend resumes to the downside. The market has declined to the previous low at level 1786.

4-hour Chart Indicators Reading
XAUUSD is below the 20% range of the daily stochastic. Gold has reached the oversold region of the market. The current downtrend is likely to subside as buyers emerge in the oversold region. The 21-day SMA and the 50-day SMA are sloping upward indicating the previous uptrend.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is in a downward move but unable to breach $1,860 high. The current fall has reached the oversold region of the market. Gold price is expected to rise to the upside as buyers emerge in the oversold region.


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