The outlook remains weak for gold, but early in the European session there are signs of support coming in. The low posted yesterday at $1147.10 has not been breached today, instead seeing some buying pressure come through. Let’s not get carries away too soon though, there is much that is still needed to be done. Momentum indicators on the daily chart are still in negative configuration and suggest that rallies should be sold into. On the hourly chart there has been a move above yesterday’s lower reaction high at $1165.20 which is an encouraging sign. Hourly momentum has also picked up somewhat with the hourly RSI at its highest since 2nd March. I will begin to sit up and take notice if the gold price can rally through the reaction high at $1170.60, whilst above $1175.40 would confirm a turnaround in sentiment. For now though this is likely to be treated as another near term bear market rally that will be sold into for a retest of the lows.
No comments:
Post a Comment