- Gold remains bullish in near term
- RSI moves horizontally below 70 level
Gold prices recorded their second session of losses in the 4-hour chart after a failed attempt to break significantly above the 2,400 round level. Chances for a reversal are increasing as the RSI is pointing south after the climb in the overbought region, while the MACD is weakening its momentum above its trigger and zero lines.
Another step lower may reach a key support at 2,378, where the price stopped last Friday. Should this prove a weak obstacle, the selling could pick up speed until the 2,352 bottom, where any violation would bring more pressure to the market with the price probably stretching further down to test the 50- and the 200-period simple moving averages (SMAs) at 2,341 and 2,332 respectively.
Alternatively, in case of a rebound, immediate resistance could come from 2,400, before the focus shifts to the all-time of 2,431.48 again, which if surpassed, would confirm the long-term ascending tendency.
In the medium-term picture the price is still increasingly bullish as long as it holds well above the 200-day SMA and near the upper Bollinger band in the 4-hour chart, which is still rising.
