Technical Analysis – Gold hourly in uptrend but resistance / congestion ahead
October 21, 2013 7:10 am
The precious metal has seen significant swings during the past week, rebounding from a low of 1251 dollars an ounce to trade at a high of 1326 three days later.
It is currently trading near the upper end of this range and it will be interesting if it can break to the upside. However, from longer timeframe charts, gold could have problems breaking through the 1327-1342 area as attempts to do so during the past 30 days or have all failed.
Gold is in an uptrend on the hourly chart, which is also confirmed by the upwards crossover of the 50-hour moving average of the 200-hour average. However, the 200-hour line is still pointing slightly downwards.
On the downside and if the high of the range fails to break, the 1303 level could prove significant before gold trades below 1300 once more. The RSI at 59 is in bullish but not yet overbought territory.
To sum up, gold has had a sharp rebound from the 1250 area but is approaching an area that has ‘buried’ rallies recently. Gold trading has also been characterized by large spikes as big as 30-40 dollars (2 such moves so far in October), which is a factor traders may want to take into account when planning their trades.
The precious metal has seen significant swings during the past week, rebounding from a low of 1251 dollars an ounce to trade at a high of 1326 three days later.
It is currently trading near the upper end of this range and it will be interesting if it can break to the upside. However, from longer timeframe charts, gold could have problems breaking through the 1327-1342 area as attempts to do so during the past 30 days or have all failed.
Gold is in an uptrend on the hourly chart, which is also confirmed by the upwards crossover of the 50-hour moving average of the 200-hour average. However, the 200-hour line is still pointing slightly downwards.
On the downside and if the high of the range fails to break, the 1303 level could prove significant before gold trades below 1300 once more.
The RSI at 59 is in bullish but not yet overbought territory.
To sum up, gold has had a sharp rebound from the 1250 area but is approaching an area that has ‘buried’ rallies recently. Gold trading has also been characterized by large spikes as big as 30-40 dollars (2 such moves so far in October), which is a factor traders may want to take into account when planning their trades.
Related Posts: