Technical Analysis – Gold eases again; SMAs point down
- Melina Deltas
In trend indicators, the short-term simple moving averages (SMAs) are pointing down and are ready for a bearish crossover. The stochastic oscillator has entered the oversold territory, while the RSI is sloping marginally down in the negative region, both suggesting a downside movement.
An extension below the intraday low of 1,742 will strengthen the case for a down-trending market, likely activating a fresh bearish wave towards the 1,723 level. Failure to hold above that floor could cause another negative extension towards the four-month low of 1,680 and the 1,676 restrictive region.
Alternatively, a successful climb beyond the 1,800 round number could open the way for the 1,834-1,855 resistance area before opening the door for a bullish bias towards the high from 1,918. A rise above this crucial line could add optimism for an upside tendency until 1,965.Overall, the yellow metal has been in a neutral phase over the last three months and only an exit above 1,834 or below 1,676 may change this view.
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