Gold: Trend reversal (bearish) signal at key resistance level.

Recent picture of daily chart depicts that gold is getting weaker after marking the high of $1452.80 resistance level. Well on Friday it made multiyear high but could not sustain and slipped sharply at $1425 level. Well gold has given us trend reversal signal at an initial stage. Well we will get further confirmation below $1400 level, a daily closing below the $1400 level will open the way towards the $1370 and $1350 level.

We may announce that gold has topped out as a dark cloud candlestick has been formed on the chart followed by other bearish candlesticks. we have seen strong bearish sentiments where bears were dominating the bulls. On contrary, we may see strong buying above $1450 level as it’s a strong resistance level. A valid breakout of $1450 level will open the way towards the $1500 and $1550 level but there must be a daily closing above $1450 level will only confirm the further bullish sentiments.

In our previous report we have written to buy it from $1380 level for the target of $1450 level which has been achieved easily, we are happy to say that our readers must have made profit from this move and last week the first phase of bulls run completed successfully.

A bearish crossover on the MACD indicator is favoring the bearish sentiments. RSI is also providing us bearish signal from positive territory. The RSI has arrived into overbought territory so some correction can’t be ruled out. The $1450 level is key resistance level followed by $1480 whereas $1400 is key support level followed by $1380 level. Odds are in favor of bears and daily to weekly bias remains bearish on the yellow metal.