- Gold consolidates within ascending channel
- 20- and 50-period SMA post bullish cross
- MACD and RSI head higher
Gold prices have been developing within an upward sloping channel in the short-term view with strong resistance at 2,336 and the 200-period simple moving average (SMA) at 2,345.
The mid-level of the Bollinger band (20-period SMA) and the 50-period SMA posted a bullish crossover, and the technical oscillators are heading north. The MACD is standing slightly above its trigger line above the zero level, while the RSI is ticking up beyond the 50 level.
Immediate resistance comes from 2,336 and the 200-period SMA at 2,345, where also the upper Bollinger band lies. Even higher, a climb above the 2,355 bar could endorse the bullish retracement.
On the other hand, a drop below the SMAs could open the way for a retest of the lower Bollinger band around the 2,306 support. Lower, the support levels of 2,295 and 2,286 may halt bearish actions.
To summarize, the precious metal has lost its strong bullish momentum and any declines below 2,286 could endorse the scenario for further decreases.
