AvaTrade - Analytics

    AvaTrade

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    Gold- A bearish pattern formed

    The precious metal is trading below its downward trend line on daily time frame. The price has formed a descending triangle pattern and this articulate that the bears are in constant battle with bulls to push the price lower. If the pattern breaks towards the downside, we could see the price well below the 1140 level. The price is also trading near the 50 day shown in yellow and the 100 day shown in red moving average and this represents that there is a tug of war between bulls and bears. If the price breaks above these averages and stays above them, then the bias would change towards the upside.

    The RSI and the MACD indicators are trading in line with the price action which means that the immediate bias is towards the downside.

    Screen Shot 2015-05-07 at 11.08.55

    Important Zones

    1156-1144 Support Zone

    1224-1214 Resistance Zone


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