Gold is hovering at $4,566 – a price it cant seem to hold above, and its dropped back after failing to climb higher than the 0.5 Fibonacci line at $4,670. A glance at the candlesticks and you can see theyre consistently closing in the red with long upper wicks, showing there are people trying to sell at higher prices but its just not happening. RSI is sitting at 44 – low enough to worry but not low enough to tell us its over yet. Gold has a support line at $4,536 (Fib 0.382), then deeper at $4,370.
Moving averages arent doing much of anything, so for the moment price is just drifting along. If Gold breaks below 4,536 then expect to see losses head down toward 4,370. But – if it manages to climb back up above 4,670, then 4,804 (Fib 0.618) might just be in the sights.
Trade idea – Sell when gold goes below 4,536, and set your stop at 4,670.
