27.02.201412:28 Forex Analysis & Reviews: Gold technical analysis for February 27, 2014

Gold price has reversed from the 61.8% retracement level at $1,340. Gold price has turned lower as the divergencies in RSI indicator were signalling weakness. The downward move has broken the short-term supportive trend line and Gold price is heading towards the Ichimoku cloud support.

Short-term support is found at $1,320-14. Short-term resistance is found at $1,330. Short-term trend has changed to down and as we noted in our last couple of posts, we were expecting that a downward move was near and that bulls should have raised their stops to $1,332. If the cloud support breaks, we should expect Gold price to move towards the longer-term upward sloping red trend line.

Gold price has made a short-term top at the 61,8% Fibonacci retracement. This reversal was expected by our previous analysis due to the Fibonacci resistance and the divergencies in RSI. Now we remain bearish as Gold price has hit our bullish stop level at $1,332. If Gold price makes a new higher high, then we will turn bullish again. If Gold price reaches $1,280-90, we will also think of changing to bullish again.