The metal succeeded in breaching the support line of the bullish wave as we mentioned in previous reports, influenced by the bearish pattern appearing on the provided chart. We know that, the suggested neckline was breached at 1192.00 earlier and after that gold found a solid support around 1156.00 areas that pushed it once more to the upside in order to re-test the pivotal resistance of 1189.00-previous support and neckline areas-.
This incline was supported by the positive signs appeared on momentum indicators of the daily basis. Thus; we believe that the bearishness might continue over short term basis, targeting 1127.00 zones but on the other hand, a break of 1189.00-1192.00, accompanied by a steady move and daily closings could cause a failure.Technical note: SMA 100 has the ability to prevent the metal from reaching the awaited re-testing areas.
By: Yasir Mubarak
Senior Technical Analyst