Sunday, 2 April 2017

Gold: Flirting with 200-day SMA

Gold was caught in a tight range during the last four weeks and tried to make decisive move.The final push occurred in the last day of March, when XAU/USD rised to $1250.57, slightly above the important 200-day SMA. Bulls couldn’t find enough strength to hold this level and the price retreated to close the week at $1248.45.
On the daily chart the 20-day SMA is starting to turn north and the technical indicators are showing overbought conditions. RSI is currently being at 58 and is displaying bullish momentum. Stochastic is still within extreme area, although has retreated to 80.A sustained weakness is seen below $1240 level, where gold is provoked to accelerate its slide towards $1235 - $1225 area. Looking to the upside, if the hesitation around the weekly close at $1248-49 zone could get flighted, next bulls target is seen at $1255. Above this point, XAU/USD is likely to aim back towards and clear the very important 200-day SMA handle at $1261.



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