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Home » Daily Technical Reports » Gold Today Technical Report 26/04/2016

Gold Today Technical Report 26/04/2016

Gold traded higher on Monday after it found some buy orders near the upward support line taken from the lows of the 10th of February. The move stayed below the 1243 (R1) resistance zone. At the moment, I prefer to take the sidelines and wait for a break above that barrier to trust further advances. On the other hand, a break of the aforementioned upward support line could challenge the 1225 (S1) support zone. Given that the metal has been oscillating between 1210 (S2) and 1278 area since the last days of February, I would maintain the view that the short-term path remains neutral. I would need a clear break below the 1210 (S2) level to trust further declines. The case is also supported by our mixed near-term momentum studies. The RSI found resistance just below its 50 line and declined, while the MACD, shows signs of bottoming around it’s the zero line. I also see negative divergence between the oscillators and the price action. Switching to the daily chart, I would hold a flat stance as far as the broader trend is concerned as well. I prefer to wait for a clear move below 1210 (S2) before I get confident on the continuation of the short-term downtrend.

GOLD 26

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