- Gold rises above short-term SMAs
- Stochastics turn down
- MACD and RSI still have positive momentum
Gold prices are rallying higher, with the prospect of reaching the record high of 2,531 again. More advances may find resistance at the next round numbers of 2,600 and 2,700.
However, the technical signals are mixed. The stochastic oscillator is heading south from the overbought region; however, the RSI is ticking higher, approaching the 70 level. Moreover, the MACD oscillator is holding above its trigger and zero lines. The 20- and 50-day simple moving averages (SMAs) are pointing higher, while the current market price is standing well above the 200-day SMA.
In the negative scenario, a drop beneath the previous high could lead the market towards the 20-day SMA at 2,460, ahead of the 2,432 support. Even lower, the 50-day SMA at 2,406, which coincides with the short-term uptrend line, may halt downside actions.
All in all, the yellow metal has had a strong bullish tendency in the long- and short-term timeframes and only a decisive close below the 200-day SMA could change the current outlook.
Source by: XM Global