Prices opened higher during Asia trading hours and we have said many times it is a recurring pattern that gold is sold during U.S. trading time zone. The resistance at $1587 is strong defended by the bears and technically, gold does not have a strong momentum to break higher. The converging Bollinger band suggests an outbreak and as of the time of writing, we could see further weakness in gold.
Gold remain directionless and it is between a rock and a hard place. It did not break below the base of the triangle and crawling in further consolidation. The MACD has converged again but without a cross to the upside, prices may remain lacklustre. With a relatively low volume, the RSI still indicate that it remains oversold. We will be more bullish once the stochastic and the MACD move in tandem.
Buy gold at $1592 and target $1605 with a stop loss at $1588.50. Should the selling overextend itself, we look to place a buy at $1530 with stop loss of $1525 and target $1550.
Gold remain directionless and it is between a rock and a hard place. It did not break below the base of the triangle and crawling in further consolidation. The MACD has converged again but without a cross to the upside, prices may remain lacklustre. With a relatively low volume, the RSI still indicate that it remains oversold. We will be more bullish once the stochastic and the MACD move in tandem.
Buy gold at $1592 and target $1605 with a stop loss at $1588.50. Should the selling overextend itself, we look to place a buy at $1530 with stop loss of $1525 and target $1550.
- Resistance: $ 1587, $ 1592, $ 1625 (50%), $ 1650, $ 1686, $ 1697 (previous high)
- Support: $ 1564, $1555, $ 1545, $ 1525, $ 1522 (2012 low)
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