The COMEX Gold experienced strong selling pressure yesterday and breached the USD1,980 support to close at USD1,973.50.
It began Tuesday’s session at USD1,984.80 and fell to the USD1,962.80 day’s low before closing at USD1,973.50. The latest bearish price action saw a bearish breakout at the USD1,980 level.
At this juncture, the commodity is attempting to find support near the 20-day SMA line, as shown by the “long lower shadow” yesterday. In a typical bearish environment, the support tends to be weak. On the upside, strong resistance or interim top has formed at USD2,020.
As long as the commodity stays below this resistance, the bears will possess the technical advantage. Since the commodity has breached the stop-loss point amid negative momentum, RHB said it is shifting to bearish bias.
