Gold(GC1!) closed at $1,735 on Friday for a -$9.80(-0.56%) loss on the trading day, but rose +$42.6(+2.52%) on the week from an opening price of $1,693 on Monday. Price is trading above the 23.6% Fibonacci retracement level which is the upper end of the total Fibonacci range from the $1,450 low(0% Fib) to the $1,788 high(100% Fib) and is the most bullish level for price to be above and indicates that price is in an uptrend. The current stop-loss level for long trades is just above the 38.2% Fibonacci level shown in blue which is where the last selloff attempt was stopped before price rose to its current level. In order for the short-term uptrend to remain intact, price needs to take out the local high at $1,788. For now, as long as price remains above the 38.2% Fibonacci level long trades can be held with the expectation that price will continue to rise.
The Relative Strength Index(RSI) is trading above the 50 level and indicates bullish short-term momentum behind price. An RSI reading above 50 indicates bullish short-term momentum while a reading below 50 indicates bearish short-term momentum. The purple RSI signal line is also above the 50 level which indicates bullish intermediate-term momentum behind price, but is trending flat which means intermediate momentum has lost strength. The green RSI line trending above the purple signal line is also bullish and indicates that there is overall bullish momentum.
The Price Percent Oscillator(PPO) shows both the green PPO line and purple signal line above the 0 level which indicates intermediate-term bullish momentum behind price. A reading above 0 indicates bullish momentum while a reading below 0 indicates bearish momentum. While both lines are above the 0 level, they are overlapping which indicates that short-term momentum has stalled out. A short-term bullish reading is when the green PPO line is trending above the purple signal line and both lines are trending up. With the lines overlapping it indicates that short-term momentum is at risk of crossing bearish, but hasn’t occurred yet.
The overall short-term view on the daily chart is bullish as the recent candles are green which indicates bullish price momentum behind price, as well as a reading above the 23.6% Fibonacci level indicating that the short-term trend is also bullish. I’d like to see momentum pick up in the indicators below as both the RSI and PPO are indicating a loss of upward momentum in the short-term. For now the 38.2% Fib level needs to hold as support to keep the trend bias bullish, while a move above the local high at $1,788 would likely be a signal of uptrend continuation.
The Relative Strength Index(RSI) is trading above the 50 level and indicates bullish short-term momentum behind price. An RSI reading above 50 indicates bullish short-term momentum while a reading below 50 indicates bearish short-term momentum. The purple RSI signal line is also above the 50 level which indicates bullish intermediate-term momentum behind price, but is trending flat which means intermediate momentum has lost strength. The green RSI line trending above the purple signal line is also bullish and indicates that there is overall bullish momentum.
The Price Percent Oscillator(PPO) shows both the green PPO line and purple signal line above the 0 level which indicates intermediate-term bullish momentum behind price. A reading above 0 indicates bullish momentum while a reading below 0 indicates bearish momentum. While both lines are above the 0 level, they are overlapping which indicates that short-term momentum has stalled out. A short-term bullish reading is when the green PPO line is trending above the purple signal line and both lines are trending up. With the lines overlapping it indicates that short-term momentum is at risk of crossing bearish, but hasn’t occurred yet.
The overall short-term view on the daily chart is bullish as the recent candles are green which indicates bullish price momentum behind price, as well as a reading above the 23.6% Fibonacci level indicating that the short-term trend is also bullish. I’d like to see momentum pick up in the indicators below as both the RSI and PPO are indicating a loss of upward momentum in the short-term. For now the 38.2% Fib level needs to hold as support to keep the trend bias bullish, while a move above the local high at $1,788 would likely be a signal of uptrend continuation.