The precious metal started a downtrend in early September after recovering from a significant retracement. It looks like the commodity could be having more substantial gains in the short term as the markets have not been performing in the last weeks.
The price managed to break a resistance level at the 61.8% Fibonacci retracement of $1,768.49 and aims to break a critical resistance level at the 50% retracement of $1,796.86. If the price can consolidate the breakout, we would see a trend reversal, pushing the price even further up.
The Bollinger bands are opening up; the price traded closer to the lower band, which is one of the reasons that the price started to recover some ground. Gold has made 1.25% in the last two trading sessions. A short-term uptrend is expected; we would have to wait for a few sessions and see if the uptrend sticks or if the general downtrend continues.
The relative strength index is recovering ground as well; the current RSI is at 46%, which will allow the precious metal to continue moving up in the short to mid-term. The price did not reach an oversold status, but it found support around the 1,750 levels.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
