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Gold Today Technical Report 03/05/2016

Gold continued trading north yesterday, but the advance was stopped slightly above the 1300 (R1) key hurdle and then the precious metal retreated to find support at 1288 (S1). Given that the price is still trading above 1278 (S2), the upper bound of the sideways range the metal had been trading since the last days of February, I would consider the short-term outlook to stay positive. I still believe that a decisive move above 1300 (R1) is possible to prompt extensions towards the 1320 (R2) zone, marked by the peak of the 14th of August. For now though, our short-term oscillators give evidence that another retreat is likely before the next positive leg. The RSI edged lower within its overbought territory and now looks able to fall below 70, while the MACD has topped and now looks ready to cross below its trigger line. Switching to the daily chart, I see that the close above 1278 (S2) has signaled the resumption of the prevailing long-term uptrend.



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