Technical Analysis for Precious Metals
We notice today that RSI dropped below line 50, as one of the signal lines of Stochastic broke the same line at 50.00 accompanied by stability below 23.6% correction at 20.06 showing on graph, and below Linear Regression Indicators. All these negative signals are occuring when the metal is trading within a technical formation that might turn to a bearish continuous one if the price broke 19.54 levels, otherwise we cannot confirm ending the Bat Pattern's effect. Therefore, we prefer to move to the sidelines today, as breaching 19.06 brings positivity back, while breaking 19.55 might trigger a new bearish wave in an attempt to break 19.34 and move below 19.00 levels.
Support: 19.74, 19.66, 19.55, 19.34, 19.20
Resistance: 19.82, 19.94, 20.06, 20.19, 20.38
Recommendation Based on the above, we prefer to remain intraday neutral today. For those who are willing to bet on the technical harmonic pattern, its possible to buy the metal with stop-loss below 19.34. But for those who are willing to bet on a bearish classical formation today, its possible to sell the metal with stop-loss above 20.38. Note: This is only to define the trend, for more details please visit the Recommendation section
Gold
The metal failed yesterday to stabilize above 1323.20 reducing positivity to an extent. MACD is still showing positive signals and RSI is still stable above line 50 despite the slight bearishness, which keeps the possibility of the overall upside move.