Gold trades under pressure after rebound
James Chen November 28, 2014 8:09 PM
<p>Gold (daily chart shown below) has begun to point lower once again after having spent much of November rebounding and making a modest recovery from […]</p>
Gold (daily chart shown below) has begun to point lower once again after having spent much of November rebounding and making a modest recovery from the new four-year low around 1130 that was established just three weeks ago.
That low dipped under major support around the 1180 level, which had been previously tested and respected three times in the recent past – in June and December of 2013, and then in October of this year.
The rebound from the new 1130 low rose above the noted 1180 level to hit a high around 1207 and the 50-day moving average late last week before retreating.
From a longer-term perspective, gold continues to be entrenched within strong bearish trend. November’s rebound served as a respite within this downtrend, but the precious metal continues to trade under pressure.
With any re-break and sustained trading below the 1180 level, gold could resume its bearish stance after the recent rebound. In this event, price action could potentially begin to target new long-term lows around the 1100 downside support level.
To the upside, the 1200 price area and 50-day moving average should continue to provide some intermediate resistance on any price advances.
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