Gold Under Pressure Once Again, Will You Short?
AvaTrade | May 08, 2014 06:50AM ET
The precious metal is under pressure this morning once again on a 4 hour time frame. The price is trading below the 1300 level which is an important level if the price wants to continue its move upward because of the psychological reason. The metal has pierced the Bollinger band and the volatility is high as it is trading away from its 20 day moving average. The piercing of the Bollinger band does have a significant importance when this takes place near the important support or resistance level but at the moment we we are not near these important levels so the price may just pause a little before it continues its trend once again.
The RSI indicator is trading in line with the price action which means that the bias is still towards the downside but an important point to emphasise is that it is trading near the over sold zone which could push the price higher.
Support Zone: 1268-1274
Resistance Zone: 1316-1309
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
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