Spot Gold is trading with narrow range on Tuesday, failing to capitalize from reversal signal on Monday’s inverted Hammer candle.
Near-term price action is consolidating above fresh seven-week low at $1220, where rising 100SMA offered temporary support after the price failed to sustain break below another strong support – daily cloud base at $1222.
Firmly bearish studies favor further downside following repeated close below $1229 (Fibo 38.2% of $1122/$1295 rally) with final break below $1220 handle to open way towards $1210 (weekly cloud base / 50% retracement of $1122/$1295).
Consolidation phase is expected to remain capped by daily cloud top ($1236) to keep focus at the downside.
Conversely, firm break above daily cloud would be seen as initial reversal signal.
Res: 1228, 1236, 1241, 1246
Sup: 1222, 1220, 1218, 1210
