26 Mar 2014
Gold to continue to slide - UOB Group
FXStreet (Barcelona) - The Market Strategy Team at UOB Group see no sign of Golds stabilization, and expect an extension lower towards 1288, with key resistance at 1342.
Key Quotes
“In our last update on 19/3/14, we highlighted the bearish divergence and the break of the rising trend- line support and suggested the risk of a pullback towards 1330. The drop has been more aggressive than expected with a low of 1306 yesterday.”
“With no signs of stabilization just yet, the current down- move is expected to extend lower towards the 50% retracement level of the 1184 to 1392 rally at 1288. Having said that, extreme oversold short-term condition may lead to a recovery but as long as the key resistant at 1342 is not taken out, the risk remains clearly on the downside for the next week or so.”
Key Quotes
“In our last update on 19/3/14, we highlighted the bearish divergence and the break of the rising trend- line support and suggested the risk of a pullback towards 1330. The drop has been more aggressive than expected with a low of 1306 yesterday.”
“With no signs of stabilization just yet, the current down- move is expected to extend lower towards the 50% retracement level of the 1184 to 1392 rally at 1288. Having said that, extreme oversold short-term condition may lead to a recovery but as long as the key resistant at 1342 is not taken out, the risk remains clearly on the downside for the next week or so.”