Trade n Trend

Home » Daily Technical Reports » Gold Today Technical Report 11/03/2016

Gold Today Technical Report 11/03/2016

Gold traded higher yesterday after it hit support at the upside support line taken from the low of the 10th of February, something that keeps the short-term outlook cautiously positive. However, the advance was stopped slightly below the 1285 (R2) resistance line and then the metal retreated somewhat. I believe that a break above 1285 (R2) is needed to signal the continuation of the near-term upside path. If the bulls are strong enough to overcome that hurdle, I would expect them to set the stage for extensions towards the psychological zone of 1300 (R3). For now, taking a look at our short-term oscillators, I see signs that another pullback may be in the works before buyers seize control again. The RSI turned down after finding resistance below its 70 line, while the MACD, although above both its zero and trigger lines, shows signs that it could start topping. On the daily chart, I still see an uptrend, but I also see negative divergence between our daily oscillators and the price action. This increases the possibilities for another corrective move.

Gold 11

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: