Trade n Trend

Home » Daily Technical Reports » Gold Today Technical Report 05/04/2016

Gold Today Technical Report 05/04/2016

Gold traded higher on Monday, moving back above the 1225 (S1) hurdle. The precious metal is still trading below the downtrend line taken from the peak of the 11th of March. However, given that the price failed to break below 1210 (S2) and that there is positive divergence between both our short-term oscillators and the price action, I believe that there is scope for gold to continue trading higher for a while. A move above the aforementioned trend line is possible to target the 1243 (R1) resistance level. Looking at our short-term oscillators, I see that the RSI moved higher and crossed above tis 50 line, while the MACD, although negative, has bottomed and crossed above its trigger line. These indicators corroborate my view that the metal is possible to continue trading north. Switching to the daily chart, I would I prefer to see the price above 1243 (R1) before assuming that the medium-term picture is back positive. For now, I prefer to take the sidelines as far as the longer-term picture is concerned.



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