Gold - No Trouble at 2600 on 2nd Attempt
Gold has extended its post-FOMC support bounce and the second test at 2600 didn't cause bulls the same trouble that the first did.
The challenge now is chasing the pair after a fresh yearly high, with daily RSI nearing overbought and weekly already well in that territory.
This, of course, doesn't mean that the trend is done. But - it does highlight the fact that patience may be the more operative way forward.
Where buyers show up on corresponding pullbacks can be telling. Like we saw after the first test at 2600 that failed, bulls returned later that day to hold support around 2550. That led to a knee-jerk move up to 2590 which stalled, and the pullback from that held at 2570 with prices pushing back up to 2590.
Those minor psychological levels have continued to play a role and that can be of interest moving forward.
A higher-low support hold at 2600 could be construed as aggressively bullish, and a sign of greater acceptance at the new big figure. A pullback to 2590 or 2580 could similarly be construed as bullish with a more attractive setup for continuation scenarios.
But if 2570 is taken out, the door has to open to deeper pullback potential and the 2544-2550 zone is back in the picture.
Longer-term, prior range resistance still remains as a point of interest as there hasn't yet been any support tests at that prior resistance and, logically speaking, there's probably a lot of bulls that would want to take profits after such a strong topside run. - js
The challenge now is chasing the pair after a fresh yearly high, with daily RSI nearing overbought and weekly already well in that territory.
This, of course, doesn't mean that the trend is done. But - it does highlight the fact that patience may be the more operative way forward.
Where buyers show up on corresponding pullbacks can be telling. Like we saw after the first test at 2600 that failed, bulls returned later that day to hold support around 2550. That led to a knee-jerk move up to 2590 which stalled, and the pullback from that held at 2570 with prices pushing back up to 2590.
Those minor psychological levels have continued to play a role and that can be of interest moving forward.
A higher-low support hold at 2600 could be construed as aggressively bullish, and a sign of greater acceptance at the new big figure. A pullback to 2590 or 2580 could similarly be construed as bullish with a more attractive setup for continuation scenarios.
But if 2570 is taken out, the door has to open to deeper pullback potential and the 2544-2550 zone is back in the picture.
Longer-term, prior range resistance still remains as a point of interest as there hasn't yet been any support tests at that prior resistance and, logically speaking, there's probably a lot of bulls that would want to take profits after such a strong topside run. - js
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