Gold – Watch out for a Bearish Attempt for May 12th

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Gold - Watch out for a Bearish Attempt for May 12th

Gold has been trading in a choppy mess as we can see in the 4H chart. But as we get into this week, we are seeing a bit of a bearish bias so get ready for a bearish attempt in the May 12th session.

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The 4H gold chart shows a choppy drift downwards. The market in the short-term is neutral-bearish. Now in the very near-term it has been developing some bearish bias as price is starting to hold under the cluster of 200-, 100-, and 50-period simple moving averages. Furthermore, after the RSI tagged 30, it has remained under 60, which reflects maintenance of the bearish momentum.

Last week, we saw the a bullish reaction after the NFP release. However, during the May 11th session, we saw these gains reversed completed. We also saw the session wrap up with a bearish outside bar, which also suggests a pending bearish attempt for the May 12th session.

The pressure is thus on the 1170 low, with risk of extending lower towards the 1130-1140 lows of 2014 and 2015. Note that in the daily gold chart, we also have a bearish bias as price trades under the 200-, 100-, and 50-day SMAs, and as the RSI holds under 60 after tagging below 30.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.