Gold is trading below 7/8 Murray and above support of 6/8 Murray. Yesterday it had a drop of more than $35.00 from the high 1,879 (8/8 Murray) to 1,844 (6/8 Murray).
Treasury bond yields remain stable, near the highest levels in months, with the 10-year rate hovering around 2.03%. This could cause gold to remain under bearish pressure and we could expect a continuation of the move lower towards the zone support of the 21 SMA located at 1,827.
As long as Gold remains below the 7/8 Murray located at 1,859 the downtrend is likely to continue and it is expected to reach towards the support of 200 EMA at 1,804 in the coming days.
On the other hand, a daily close above 1,860 could signal the resumption of the bullish move and we could expect it to rise as high as towards the level +2/8 Murray in 1,906.
The eagle indicator is in the overbought zone and the bearish pressure is likely to continue to pressure gold. This signal will support our bearish strategy and give us an opportunity to sell as long as it remains below 1,860.
The market sentiment report shows that 68.26% of traders are buying gold. This is a mixed signal and any technical bounce is likely to be an opportunity to continue selling gold with targets towards the support of 200 EMA at 1,804.
Our trading plan is to sell below 1,860 with targets at 1,843 1,827 and 1,804. The eagle indicator supports our bearish strategy.
Support and Resistance Levels for February 16 - 17, 2022
Resistance (3) 1,8790
Resistance (2) 1,879
Resistance (1) 1,873
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Support (1) 1,843
Support (2) 1,828
Support (3) 1,812
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Scenario
Timeframe Daily
Recommendation: sell below
Entry Point 1,860
Take Profit 1843; 1828
Stop Loss 1,867
Murray Levels 1,875 (8/8), 1859(7/8), 1843 (6/8), 1,828 (5/8) 1812 (4/8)
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