Gold daily video, January 18, 2018

[Sive Morten]

Good morning,

today we expect downside continuation to our short-term destination point around 1321-1322. But, potentially, may be on next week, we do not exclude deeper retracement:




The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[Fx.arena]

Technically we can notice the following on the chart:

1- Yesterday's candle is bearish inverted hammer engulfing all candles since Monday.

2- Gold has closed below 5-EMA, currently testing 10-EMA at 1224. (Daily)

3- Gold broke the rising channel black channel downward.

4- Daily RSI has reached 74 level, oversold market.

5- On W1, gold should test 5-EMA at 1310+.

6- On daily chart, gold is demonstrating head and shoulders pattern, and we expect some short daily sideways to complete the right shoulder and any corrections should be contained in yesterday's low edge candle or upper half.

Combining all the above, it is highly expected that gold has triggered a bear trend but only a close below 1322 will confirm that.