Gold: Loss of upside momentum – Commerzbank
Karen Jones, analyst at Commerzbank, suggests that there is a loss of upside momentum for gold as its new high at 1298.68 was not confirmed by the daily RSI.
“We are seeing a small retracement and would allow for some further slippage near term to the 1275 near term uptrend and potentially back to the 1248.50/1246.63 55 and 200 day moving averages. Here we would expect to see the market stabilise and recover further. Provided that dips lower are contained by the 1221.80 short term 5 month uptrend, an upside bias will be maintained.”
“Initial resistance above 1298/1300 is the 1309.57 June 2018 high and then the 2015-2019 resistance line at 1360. The support line at 1221.80 guards the 1183.04/1180.84 late August, September and October lows.”
“A fall below the 1180.84 September low would put the 1160.24 August low on the cards.”