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

Gold Today Technical Report 05/05/2016

Gold slid below 1278 (S1) on Wednesday, but it hit support slightly above 1270 (S2) and then it rebounded back above 1278 (S1). In my opinion, the short-term outlook remains somewhat positive and as a result, I would expect the rebound to continue and perhaps challenge the 1288 (R1) zone. A clear break above that zone could open the way for another test near the 1300 (R2) psychological barrier. Our momentum studies show signs that they could move higher in the near term, supporting the notion. The RSI turned up and is now back above its 50 line, while the MACD, already positive, shows signs that it could start bottoming. Switching to the daily chart, I see that the close above 1278 (S1) on Friday has confirmed a higher high on the daily chart and signaled the resumption of the prevailing long-term uptrend. This is another reason I believe that the precious metal is poised to trade north in the foreseeable future.

Gold 05

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