- Gold continues to show some resilience below $1520 level.
- Bulls await a move beyond a three-day-old trading range.
Gold extended its sideways consolidative price action on Tuesday and barring a couple of knee-jerk reactions, remained well within a broader trading range held over the past three sessions.
The top end of the mentioned trading range coincides with 100-hour SMA and should now act as a key pivotal point, which might help determine the commodity’s next leg of a directional move.
On the downside, bulls have been showing some resilience below 200-hour SMA, which nears a support marked by 23.6% Fibonacci level of the $1400-$1555 recent upsurge to multi-year tops.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have again started gaining positive traction on hourly charts, support prospects for an eventually bullish breakout.
However, a negative RSI divergence on the daily chart clearly suggests that the commodity might have topped out in the near-term and thus, warrant some caution before placing fresh bullish bets.
A sustained break below the $1520-18 immediate support will reaffirm the negative bias and set the stage for an extension of the recent corrective slide towards the $1510-09 intermediate support.
The slide could further get extended towards the key $1500 psychological mark before the precious metal eventually drops to test the next major support near 38.2% Fibo. level – around the $1495 area.
On the flip side, the $1530-32 region might continue to act as an immediate strong resistance, which if cleared decisively might pave the way for a move back towards the $1555 region – multi-year tops.
Gold 1-hourly chart
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