Gold has made a strong rebound in the past two days, gaining more than $30 to reach a new 6-month high.
Prices bounced off key support at 1327.94 on March 10 and moved higher by breaking two key resistance levels at 1337.11 (61.8% Fibonacci of August 25 – December 29) and 1354.63 (March 3 high) before testing 1361.60 (October 28 high).
An analysis of the 4-hour chart showed the bullish trend remains intact as shown by the rising trend line and the market being above the two moving averages (20 and 50-period). The moving averages are both rising, which is also a bullish sign.
Prices briefly peaked at 1362.96 today before easing back down to the 1356 area. A correction is possible since the market is currently overbought as shown by the stochastic indicator. RSI is also rising and approaching extreme levels.
A dip lower would take prices to previous resistance levels now turned to support levels at 1354.63, 1337.11 and 1327.94.
Gold has made a strong rebound in the past two days, gaining more than $30 to reach a new 6-month high.
Prices bounced off key support at 1327.94 on March 10 and moved higher by breaking two key resistance levels at 1337.11 (61.8% Fibonacci of August 25 – December 29) and 1354.63 (March 3 high) before testing 1361.60 (October 28 high).
An analysis of the 4-hour chart showed the bullish trend remains intact as shown by the rising trend line and the market being above the two moving averages (20 and 50-period). The moving averages are both rising, which is also a bullish sign.
Prices briefly peaked at 1362.96 today before easing back down to the 1356 area. A correction is possible since the market is currently overbought as shown by the stochastic indicator. RSI is also rising and approaching extreme levels.
A dip lower would take prices to previous resistance levels now turned to support levels at 1354.63, 1337.11 and 1327.94.
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