Technical Analysis – Gold falls from record high but 2,000 remains strong support
May 10, 2023 7:25 am
Gold is still developing well above the 2,000 round number, remaining strongly bullish but the short-term simple moving averages (SMAs) in the 4-hour chart suggest a potential downside correction. The RSI indicator is falling in the positive area, while the MACD is heading sideways near its trigger and zero lines.
An extension of the declining move may find support at the 50-period SMA at 2,015 ahead of the 2,000 psychological mark and the 200-period SMA. Any movements beneath the latter may open the way for a more negative structure until 1,976.
On the other hand, a climb above 2,038 could add to the optimism for another bullish wave until 2,060 and the previous record high of 2,079.20.
In a nutshell, the yellow metal is bullish in the long-term timeframe but if there is a drop below the 200-period SMA, it may switch the near-term view to neutral.
Gold is still developing well above the 2,000 round number, remaining strongly bullish but the short-term simple moving averages (SMAs) in the 4-hour chart suggest a potential downside correction. The RSI indicator is falling in the positive area, while the MACD is heading sideways near its trigger and zero lines.
An extension of the declining move may find support at the 50-period SMA at 2,015 ahead of the 2,000 psychological mark and the 200-period SMA. Any movements beneath the latter may open the way for a more negative structure until 1,976.
On the other hand, a climb above 2,038 could add to the optimism for another bullish wave until 2,060 and the previous record high of 2,079.20.
In a nutshell, the yellow metal is bullish in the long-term timeframe but if there is a drop below the 200-period SMA, it may switch the near-term view to neutral.
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