Gold consolidating bullish break before next leg higher?
Gold has been on a nice run, breaking out of the pennant it had been coiling in before doing away with the downtrend dating back to the record high set in May.
Momentum on the 4H timeframe remains to the upside with MACD and RSI signaling building strength. While the latter sits in overbought territory, it’s not at the level that warns of an imminent risk of a snapback in price. Nor is price overbought on longer timeframes.
Given $2354.80 acted as support and resistance in early June when gold was last around these levels, it comes across as a decent level to build a bullish trade around.
Buying dips towards $2360 targeting the June high of $2387.80 is one setup, allowing for a tight stop to be placed below $2354.80 for protection. There may be some resistance encountered around $2369.10 given it acted as support briefly in the first week of June.
DS
Momentum on the 4H timeframe remains to the upside with MACD and RSI signaling building strength. While the latter sits in overbought territory, it’s not at the level that warns of an imminent risk of a snapback in price. Nor is price overbought on longer timeframes.
Given $2354.80 acted as support and resistance in early June when gold was last around these levels, it comes across as a decent level to build a bullish trade around.
Buying dips towards $2360 targeting the June high of $2387.80 is one setup, allowing for a tight stop to be placed below $2354.80 for protection. There may be some resistance encountered around $2369.10 given it acted as support briefly in the first week of June.
DS
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