Gold started recovery after plunging to the $1,680 levels; the price managed to recover more than 7% in two weeks of trading but is now struggling to stay above the $ 1,800's.
The precious metal broke three resistance levels in less than ten sessions; the last break on the 50% Fibonacci retracement has not been consolidated as the price is fighting back. Currently, it's at $1,795, but we expect this breakout to be completed in the short term as our technical indicator suggests that the uptrend will resume.
The Bollinger bands are wide and steady; we expect medium to high volatility in the upcoming sessions. The price trades in between the bands, which suggests that it is at a fair price. The relative strength index is at 52%, which will allow the price to continue moving upwards; there is enough room for it to go to the low, perhaps mid $1,800.
The short and long-term moving averages have been crossing recently; current lines indicate a downtrend, but this factors in the last 20 and 40 sessions, respectively. The compounded average has much more weight on the aggressive downtrend in early August.
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