Gold rallied overnight with breaking the ten-day range and psychological key resistance 1500$ mark, whereas the price remains capped at 50MA to keep it in a range between 1505.00$-1473.90$. The indicators give a mixed outlook as the RSI lacks momentum and parked tad above the 50 equilibrium, whereas the oscillator is positive.
Support at the 14WMA has held firm in recent weeks keeping momentum in favor of the upside; however, rallies would be capped either at 1520$ or 1535$. To confirm a change in trend, the price needs to break through 1535$. The 50MA has crossed above the 20MA, which is traditionally bearish.
On the downside, a break below the $1594 may trigger losses towards 1488$ before $1481$.
On the upside, despite apprehension amongst traders increasing at 1505$, a break above this level may pave the wave for higher prices through $1512 and trend resistance towards $1517-1520$ at the time of writing gold remains capped at 50MA.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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