Gold’s spike on Monday left the metal overbought on the 4-hrs chart courtesy of which a minor pull back to 5-DMA level of $1339 cannot be ruled out, however, the bullish break in the daily RSI coupled with the daily MACD above zero suggests the metal is on its way to test strong resistance around $1356 levels.
Trend line drawn from July 11 high to Aug 2 high comes around $1356. A day end close above the same would open doors for a revisit to $1380 levels.
On the other hand, a day end close below 5-DMA would suggest short-term bullish invalidation.
Trend line drawn from July 11 high to Aug 2 high comes around $1356. A day end close above the same would open doors for a revisit to $1380 levels.
On the other hand, a day end close below 5-DMA would suggest short-term bullish invalidation.
