05.03.201404:23 Forex Analysis & Reviews: Technical analysis of Gold for March 05, 2014.

Long-term review

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Technical outlook and chart setups:

1. Gold seems to have reversed just ahead of major resistance at $1,361.00 yesterday. The metal has produced an engulfing bearish candle, hinting that the next move is lower. It is recommended to initiate short positions around $1,345.00/50.00, risk remains at $1,362.00.

2. Immediate resistance is at $1,361.00, followed by $1,375.00, while supports are spread through $1,320.00, followed by $1,280.00/70, $1,230.00/20.00 and lower respectively.

3. The structure indicates that a meaningful retracement could be possible now. Bears seem to be in control at the moment and hence intraday rallies should be sold. $1,320.00 remains of interest for the next bearish leg to continue further.

Trading recommendations:

Sell around $1,345.00/50.00, stop is at $1,362.50, target is open.

Good luck!

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