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– James Steel, HSBC Securities (based on Reuters)
Pair's Outlook
The yellow metal continued to surge during Wednesday's trading session, marking the third consecutive session of gains. However, the bullion is facing a strong resistance level, which is keeping it down. The resistance is represented by the weekly R1 at 1,189.45, and the resistance is set to become even stronger, as the 55-day SMA is moving lower and will join the weekly R1 tomorrow. In addition, at 1,195.14 is a trend line intersection of the medium and long term patterns. These factors combined indicate at an end of the bullion's surge. A reversal of the trend is about to occur.
Traders' Sentiment
Traders remain bullish, regarding the yellow metal, as 55% of open positions were long on Wednesday. Meanwhile, 58% of trader set up orders were to buy the metal.
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