24/02/15 Gold tumbles below 1,200 mark in choppy dealings


240215 XauUsd Daily

Gold was trading in a capricious manner overnight with price complex tumbling below the 1,200 mark to 1,191(in early session) before rebounding back to the high at 1,210. As shown on the daily chart, candles has broke below the Fibonacci Extension at 61.80% and is trending lower. For now, the yellow metal is tentatively defending a key technical support zone. As China remains shut for lunar NY holiday, Gold is going to trade on the back Fed Chair Janet Yellen’s semi-annual Congressional testimony on monetary policy.

240215 XauUsd H4

Gold dips below 1,200 mark in choppy dealings, on news that Greece has finally struck a deal with its creditors. Such news bores tremendous selling pressure on the precious metal which eventually broke below the Fibonacci Extension at 61.80%. The precious metal did found support above the 1,190 region, which had bargain hunters buying on opportunity (Coincidentally, Stoic. Oscillator is showing a confluence of support). Nonetheless, to improve the near term outlook for the precious metal, a close above 1,222 would be needed, acting as a clear bullish reversal signal.

240215 XauUsd H1

Despite bouncing up from its low, gold is now seen trading at 1,203 level. Technical vulnerability continues to be on the downside with the record of lower high and lower low on the H1 chart. Heading into Yellen’s testimony, If support at 1,191 does gives way, the next technical support would comes in at 1,186.

Trend Direction
 S3
S2
S1
R1
R2
 R3
 
Bearish  1,167  1,186  1,191  1,222  1,237  1,245

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