Technical Analysis - Gold - Still struggling

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William Adamswilliam.adams@fastmarkets.comHead of Research+44 (0)20 7264 2489
Short term:Up
Medium term:Flat
Long term:Down
Resistances:
R11618
R21627 RL
R31629.80 High 27 July
R41634.30
R51641.15 Peak
R61667 DTL
Support:
S11603
S21584
S31554
S41532-1522 Triple bottom
S51478-1468
Stochastics:
Turns bearish
Legend:

UTL = Uptrend line

DMA = Daily moving average

MACD = Moving average convergence divergence

BB = Bollinger band

Image

Analysis

  • Gold prices are trading in an elongated triangle, prices have look well placed to re-challenge the top of the triangle and various resistance levels above there that run between $1,630 and $1,641, but once again prices have failed to overcome resistance in the $1,618-$1,620 area.
  • The stochastics have re-crossed lower (intraday), which does not bode well and suggests prices may move back into consolidation mode.
  • The chart picture will start to improve as and when each of the following levels is overcome: $1,618, $1,627, $1,630 and $1,641 - it would weaken on a drop back below $1,584.

Conclusion

Gold prices have been oscillating sideways within a triangle - they have had an opportunity to tackle resistance, but  failed to take it. Looks like more range-trading ahead.

All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.


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