Technical Analysis – Gold advances considerably towards 2-month high
Posted on June 3, 2019 at 9:41 am GMT
Melina Deltas, XM Investment Research Desk
Gold prices have been in a flying mode over the last couple of days, hitting a new two-month high around 1,315. The yellow metal jumped above the Ichimoku cloud and the 23.6% Fibonacci retracement level of the upleg from 1,160 to 1,346.61, near 1,302 as well as above the 1,310 barrier.
The RSI and the stochastic oscillator signal that room for improvement is limited as the former is approaching the 70 overbought mark and the latter is rising above the 80 level in the daily timeframe. Yet the bullish cross between the 20- and 40-day simple moving averages is a positive signal for the market trend.
If the price continues the recent sharp positive movement the door could open for the 1,324 resistance, identified by the peaks on March 25. Should the bulls beat this level, the next level to watch should be the ten-month high of 1,346.61.
In case of a bearish correction below the 23.6% Fibonacci (1,302), prices could touch the 38.2% Fibonacci of 1,375. Another key barrier is located around 1,269 taken from the latest lows.
In the very short-term picture, the sentiment turned bullish from neutral.