GOLD TECHNICAL ANALYSIS – TALKING POINTS:
- Gold prices falter below $1700/oz figure, slide back to trend support
- Dark Cloud Cover candlestick setup, RSI divergence warn of topping
- Retail trader sentiment studies offer mixed cues, bias favors weakness
Gold prices, after a slight rise to seven-year highs, were slightly below $ 1,700 an ounce. The metal is now hovering slightly above the resistance unfolded in the support area 1535.03-57.10, a barrier reinforced by a rising trend line that defines an upward slope from 2019. Middle. A break below this limit can counteract short-term upward pressure and allow for downward expansion.
Gold price daily chart created using TradingView
As the weekly schedule approaches, the tracks seem to be pointing down. The bearish pattern of the Dark Cloud candlestick looks higher. Negative RSI differences support the negative scenario, suggesting that the negative RSI disappears. Applying changes seems to require a complete break with trend support.
Gold price weekly chart created using TradingView
GOLD TRADER SENTIMENT
Retail sentiment data show that 74.29% of traders are cash and the long to short ratio is 2.89 to 1. The number of cash long traders is 14.27% higher than yesterday and 1.52%. lower than last week, while the net short score is 27.02% higher than yesterday and 37.32% lower than last week.
IG Client Sentiment (IGCS) is typically used as a contrarian indicator, soretail traders being net-long suggests gold prices may continue to decline. However, positioningis less net-long than yesterday even though it is moresocompared with last week.This makes for a clouded sentiment-based outlook.
GOLD TRADING RESOURCES: