Gold recently breached the 1,800 handle and has extended beyond the simple moving averages (SMAs) and the Ichimoku cloud. Although the longer-term averages are endorsing a more neutral trend, the upturn of the 50-period SMA, is suggesting upside momentum is gaining the upper hand.
The short-term oscillators are indicating a positive preference in the price. The MACD, in the positive section, is sustaining its gradual climb above its red trigger line, while advances in the RSI have neared the 70 overbought level. The stochastic %K line has steered back above the 80 level and is sponsoring positive price action in the commodity.
In the positive scenario, gold may struggle to gain further ground past the 1,828-1,832 resistance border, crowded by another barrier overhead at 1,835. If buyers manage to conquer these obstacles, the price may then propel for the 1,851-1857 resistance barricade, extending back to mid-November 2021, which encapsulates the recent two-month high of 1,854.
If the commodity’s price falters at the key resistance, sellers may face an initial tough support zone from the 100-period SMA at 1,818 until the 200-period SMA at 1,813, which includes the cloud’s upper surface. If negative pressures persist, the bears may then meet downside limitations from the support zone from the 1,808 low until the 50-period SMA at 1,804. From here, if gold continues to lose its shine, a dive below the cloud and the 1,800 hurdle could have the price target the 1,786-1,792 support section.
Summarizing, gold is exhibiting a bullish mood above the SMAs and the cloud. That said, the broader neutral bias still prevails.
Written by Admin
Corporate executives are taking a dim view of their prospects, with a majority now expecting ...
Stock futures were little changed in overnight trading Tuesday ahead of a key inflation reading.Futures ...
Factories in China affected by Covid lockdowns can conditionally resume work, by housing workers on-site ...