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Gold Technical Analysis - Plus a few gold stocks

Wednesday, 20th November 2019 13:19 - by Rajan Dhall

Gold has been trading well technically over the last few weeks with both trendlines and support and resistance levels being respected.

 

The yellow metal is in a pretty tricky area but there are some signs of weakness.

 

Looking at the daily chart below the three day winning streak has hit a snag at the $1480/oz resistance level.

 

That is not to say we will stop there today as when the US markets open the risk trade may come back into fashion. 

 

The key point for me on the chart was the break lower under $1459.23. This is when the consolidation wave pattern broke lower and the price made lower low lower high waves.

 

If $1480/oz holds as a resistance today and if the price does not close above the level, price may edge toward the bottom of the channel again. 

 

The next wave high is pretty high up at $1516.05 and until that level is broken the bearish bias will remain intact.

 

The price has also broken back above the trendline which could act like a tricky support so to confirm the bearish bias a break below is needed. Lastly, the RSI is also in a bearish territory but still has space to move into the oversold area.

 

Spot Gold Daily Chart

Fresnillo Weekly Chart

Newmont Gold Corporation Weekly Chart (US Listed)

 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.

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