EGLD: Overbought at Resistance

Trade setup: Price broke back above the down trendline and above 200-day moving average ($32), which confirmed a bullish trend reversal to Uptrend. Then it spiked up to $50 resistance. However, price is now very overbought (RSI > 90!) just as it reached that $50 resistance. Hence, near-term, we’re likely to see it pause here on some profit taking.

Trend: Uptrend on Short- and Medium-Term basis and Downtrend on Long-Term basis.

Momentum is Bullish but extremely overbought. ( MACD Line is above MACD Signal Line). RSI is bullish (> 55) but extremely overbought (> 80) which could imply that price could briefly pause or pull back if it reaches Resistance.

Support and Resistance: Nearest Support Zone is $28 (previous support), then $22. The nearest Resistance Zone is $38, which it broke, then $50.


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