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Home » Daily Technical Reports » GOLD Daily Chart 04/03/2016

GOLD Daily Chart 04/03/2016

Gold edged higher on Thursday, breaking above 1250 (S1), the upper bound of the sideways path the metal had been trading since the 23rd of February. This move has turned the short-term outlook to the upside and caused the metal to hit our resistance zone of 1265 (R1), marked by the peak of the 11th of February. If the bulls prove strong enough to overcome that hurdle, I would expect them to target our next resistance area of 1285 (R2). Our short-term momentum studies reveal upside speed and support the case for the precious metal to continue trading higher. The RSI looks ready to move back above its 70 line, while the MACD stands above both its zero and trigger lines and points north. Furthermore, both these indicators have emerged above their downside resistance zones. On the daily chart, I see that on the 4th of February the price broke above the long-term downside resistance line taken from the peak of the 22nd of January 2015. This keeps the medium-term uptrend intact in my view. I believe that yesterday’s move above 1250 (S1) has signaled the resumption of that trend.

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