Technical Analysis – Gold finally rallies well above 2,000
April 5, 2023 7:27 am
Gold surged above the 2,000 round number and reached a new 13-month peak of 2,025 earlier today, confirming the long-term bullish outlook. The commodity is standing well above the short-term simple moving averages (SMAs) as well as above the ascending trend line.
Technically, the RSI indicator is flattening near the overbought territory but is weakening the current bullish momentum, while the MACD is strengthening above its trigger and zero lines.
Should the price manage to strengthen its upside move, the next resistance to have in mind is the previous high of 2,074.90, taken from the highs in August 2020. A break higher test the psychological mark of 2,100, driving the market into uncharted levels.
However, if prices are unable to break higher, the risk would shift to the downside, with the 2,000-2,010 support zone coming into focus. A drop lower could send the precious metal towards the 20-period SMA, which stands near the 1,985 support level ahead of the 50-period SMA at 1,976.
In brief, gold is showing more positive actions after the recent surge, creating an upward sloping channel in the short-term timeframe.
Gold surged above the 2,000 round number and reached a new 13-month peak of 2,025 earlier today, confirming the long-term bullish outlook. The commodity is standing well above the short-term simple moving averages (SMAs) as well as above the ascending trend line.
Technically, the RSI indicator is flattening near the overbought territory but is weakening the current bullish momentum, while the MACD is strengthening above its trigger and zero lines.
Should the price manage to strengthen its upside move, the next resistance to have in mind is the previous high of 2,074.90, taken from the highs in August 2020. A break higher test the psychological mark of 2,100, driving the market into uncharted levels.
However, if prices are unable to break higher, the risk would shift to the downside, with the 2,000-2,010 support zone coming into focus. A drop lower could send the precious metal towards the 20-period SMA, which stands near the 1,985 support level ahead of the 50-period SMA at 1,976.
In brief, gold is showing more positive actions after the recent surge, creating an upward sloping channel in the short-term timeframe.
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