- A third test of the key trendline resistance ahead could be on the cards.
- This level is above the 13 March highs around 1311.
- a subsequent break of 1311 brings in the 78.6% Fibo of the prior swing high’s (25 March) decent.
- The 78.6% Fibo guards a run to 1325, the halfway mark to 1350 and as such, will be a key resistance level.
- However, overbought readings could prove a weight on the precious metal’s northerly trajectory.
- A break below 1301, the 21-D SMA and then a subsequent run to 1280 will open prospects for a run the downside target of 1275 (38.2% Fibo retracement of the Aug 2018-Feb swing lows and highs).
- Below here, the 200-DMA will come into play, (1250/50% Fibo area). Bulls need a break of 1307 and trendline resistance to attract fresh bids in pursuit of Feb highs and 1350.
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