Gold bounced back above the 1100 level on Tuesday after plunging to a 5.5-year low on Monday. But with prices only halfway from recovering Monday’s losses, the indicators are still looking very bearish for gold.
RSI is pointing upwards but the rise hasn’t been enough to take it out of oversold territory, suggesting that further rebound may be due for gold in the near term. If gold is able to sustain today’s gains, it will likely meet resistance at the tenkan-sen line at 1119.41.
The medium-term indicators however are looking extremely bearish with prices sharply below the Ichimoku cloud and the moving averages. Immediate support comes from yesterday’s trough at 1071.19. A fall below this level would see prices being tested at the 2010 low of 1044.35.
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