Technical Analysis – Gold leans on the bullish side
August 23, 2023 10:27 am
Gold is looking to exit a bearish channel in the four-hour chart after its sell-off stalled around the 1,884 level.
Encouragingly, the precious metal has surpassed its 20- and 50-period simple moving averages (SMAs), making its latest rebound more credible. The positive momentum in the technical indicators is further boosting hopes for an upside reversal; the MACD has entered the positive region for the first time since the end of July, while the RSI is clearly trending up above its 50 neutral mark.
On the other hand, the stochastic oscillator has edged above its 80 overbought mark, suggesting that room for improvement could be limited. The 1,911 constraining zone could block the way towards the 1,920 area, while higher, the 1,930 resistance could delay an extension towards the 200-period SMA at 1,936.
On the downside, the 20- and 50-day SMAs may pause any declines within the 1,895-1,900 territory. If they fail, the bears will revisit the 1,884 floor, a break of which could sink the price towards the 1,870 barrier and the channel’s lower boundary. The 1,860 region could be the next destination.
In summary, gold is sending bullish signals as the yellow metal is pushing for an upside reversal. Resistance is expected to develop around 1,911.
Gold is looking to exit a bearish channel in the four-hour chart after its sell-off stalled around the 1,884 level.
Encouragingly, the precious metal has surpassed its 20- and 50-period simple moving averages (SMAs), making its latest rebound more credible. The positive momentum in the technical indicators is further boosting hopes for an upside reversal; the MACD has entered the positive region for the first time since the end of July, while the RSI is clearly trending up above its 50 neutral mark.
On the other hand, the stochastic oscillator has edged above its 80 overbought mark, suggesting that room for improvement could be limited. The 1,911 constraining zone could block the way towards the 1,920 area, while higher, the 1,930 resistance could delay an extension towards the 200-period SMA at 1,936.
On the downside, the 20- and 50-day SMAs may pause any declines within the 1,895-1,900 territory. If they fail, the bears will revisit the 1,884 floor, a break of which could sink the price towards the 1,870 barrier and the channel’s lower boundary. The 1,860 region could be the next destination.
In summary, gold is sending bullish signals as the yellow metal is pushing for an upside reversal. Resistance is expected to develop around 1,911.
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