Gold – Testing major resistance

Can gold push back into bullish territory

Not only did Gold not recover from the NFP blow on Friday, but things got a whole lot worse on Monday.

The yellow metal has since recovered the bulk of the losses sustained during illiquid trade at the start of the week but that may not improve the outlook.

Gold is currently testing that major support – $1,750 – from below and a rebound off this level could be viewed as confirmation of the initial breakout and give a very bearish signal.

The fact that this roughly coincides with the 50 fib level further adds to its significance as a major resistance level .

A move above here doesn’t necessarily put gold back in bullish territory, there’s still a few obstacles to overcome, but it would be a big step.

Further resistance may be found around $1,770 (61.8 fib) or $1,790/$1,800, where prior support combines with a cluster of moving averages on the 4-hour chart.

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