Gold faces resistance at $1700 after a Bullish impulsive momentum. The Gold may now continue to push lower towards the next support zone. Let’s check the Gold Technical Analysis for more levels and insights.
March 10, 2020, | AtoZ Markets – Gold successfully reached at $1700 area on Monday and rejected the resistance. After rejecting from $1600, support area Gold became non-volatile and impulsive with the bullish trend. The price of Gold currently pushing lower after rejecting the resistance at $1700.
Gold dropped after hitting the ceiling of $1700 per ounce as traders measured the demand ruin in the top jewellery market in China against the safe-haven from Coronavirus fears. Gold hit 7 years high earlier while having unrest on the global market from the crash in oil price.
Moreover, Eric Scoles, Commodities Strategist at RJO Futures in Chicago, said earlier, “There’s a lot of activity obviously in Gold but what’s really moving it is people putting into it as a safe-haven, while others are selling amid the demand destruction in China.”
Gold Faces Resistance may Continue to Push Lower
Gold is currently residing near the $1660 area and trying to push lower. After a strong Bullish momentum Gold faces resistance at $1700 area. The price may continue to push lower in the coming events.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the Gold is currently trading at $1660 area after Gold faces resistance followed by intense bearish pressure. Gold did retrace 50% of the 4-hour Bearish engulfing bar and currently breaking below $1660 area. If the price continues to push down, the bears may reach lower towards the $1600 support area in the coming days.
Moreover, the price broke below the dynamic level of 20 EMA as well, along with the Kijun line and the Tenkan line. This dynamic levels may now become strong resistance for the Bulls on the way higher. On the other hand, the MACD indicator’s lines had a Bearish cross over as the price push lower in the process.
Bullish pressure may Continue further after Retracement
According to the Daily chart, the price of Gold is now residing near $1650 area and impulsively pushing lower. The Bullish momentum is still on the market. If the price can retrace down towards $1600 support area and have a strong daily close above the support level, the Bullish pressure may sustain further with the target of $1700 again.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. The dynamic levels may work as strong support for the price, which may result in pushing higher in the coming days. Additionally, the MACD histogram volumes are showing Bearish divergence, which is a good indication of upcoming bearish pressure in the making.
To conclude, Gold Bears may take over the market and push the price lower towards the next support area at $1600. As it remains below $1700, further downward pressure expected.