Trade n Trend

Home » Daily Technical Reports » Gold Today Technical Report 07/04/2016

Gold Today Technical Report 07/04/2016

Gold continued trading in a quiet mode on Wednesday, oscillating above and below the 1225 (S1) obstacle. The metal is approaching once again the downtrend line taken from the peak of the 11th of March, where a break could open the way for the 1243 (R1) resistance zone. Looking at our momentum indicators, I see that the RSI is back above 50 and points north, while the MACD has bottomed fractionally below zero and looks willing to turn positive. What is more, there is still positive divergence between both these indicators and the price action. These signs corroborate my view that the yellow metal is likely to move above the aforementioned downtrend line soon. 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.

GOLD 7

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: