The
Trump factor mirrored in Gold weakness and during the last six weeks we
witnessed strong bearishness. Prices were driven lower with around $200. Market
conditions were within extreme oversold area.
Now
the setup has changed into bullish mode in the short-term. Since late December
2016 Gold is moving up and formed bullish channel as shown on the hourly chart
and prices are seen higher with around $50. Today a fresh new daily high was
marked at $1185. Well, the surge of the price is due to the continuation of the
of the latest bullish trend, but is also supported by the US dollar’s current weakness.
And this is an important point that should be considered. The greenback is now exposed
to large sell-off and Gold is not moving up without motivation.
Technical indicators are recovering from overbought territory, but still are
located at north area. Both RSI and Stochastic are slightly turning to south on
the hourly chart, but if we look at the H4 they are still confirming the
bullish trend.
Support now is seen at 23.6% Fibonacci retracement at $1173 (latest decline
from Presidential elections high at $1336 to December 15th low at $1122). Strong
resistance is located at $1188 (December 2nd high). Should the price cross to
above this level, then bullishness in longer term could be possible.
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