Gold passes strong support level

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 45% 46% -2.22%
Shorts 55% 54% 1.82%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Sell Neutral Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

The bullion is set to fall below the 1,245 mark at some time during Monday's trading session. That is being indicated from a technical perspective by the fact that the commodity price has passed the strong support level of the monthly pivot point, which is located at the 1,253 mark. The support of the monthly PP held the bullion from falling below the 1,250 mark more than 40 hours. It is most likely that the commodity price will decline below the 1,245 level, as until that mark there are no notable support levels, which could hinder the fall. Meanwhile, it has to be noted that the commodity price is approaching the support of a long term pattern. The lower trend line of the dominant pattern on Monday morning was located just above the 1,240 mark.

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