Monday, February 13, 2017 –
Gold 4 hour chart shows price falling below the 50 moving average in the first hours of the trading week. Stochastic made a bearish cross and is currently reaching extreme oversold levels.
The daily chart for gold is also looking bearish. Stochastic made a bearish cross and RSI also touched overbought levels a few days ago. We are short term bearish for gold right now. Short term target is a support from May 2016 which is 1204.07. Second target if price below the first level is 1182.63.
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Friday, the 4 hour chart shows that gold price just bounced off the 50 moving average and stochastic is showing a bullish cross right now. Last Thursday’s session saw Gold traders taking their profits after a 5 day climb. This bounce could be a start of another run towards making new highs for this month for gold.
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February 8, 2017
Gold is currently moving closer to the 200 moving average of 1264 and could find some resistance soon. Gold last January found some nice support close the 50 moving average and started this rally to the 200 MA. RSI and Stochastic is currently at overbought levels and definitely we could see some profit taking soon. A lot of traders are predicting that gold could go higher due to the possibility that the US Dollar could weaken. We could see gold test the high of Nov 2016 in the near future.