Gold is attempting to reverse four straight sessions of losses but fell back from an earlier effort to hold on to the 1175 level. The near-term bias remains bearish as RSI has fallen back below 50 and the stochastics are still trending down.
The linear regression channel lines provide the nearest support and resistance levels at 1152 and 1198 respectively. Prices reversed their modest rebound from the March 17 low of 1142.65 to the March 18 high of 1232.22 to shift to a downward path. This downtrend may continue in the medium term given that the tenkan-sen line is below the kijun-sen line and prices have drifted further below the Ichimoku cloud.
A fall below the March 17 low of 1142.65 would add to the downside momentum and steepen the downtrend. But with the stochastics moving into oversold territory and the other indicators not overly bearish, gold may be able to reverse the downtrend before breaking out of its current long term range.
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