Gold: Can this positive near term bias within the range translate to a move that drives a breakout? [Video]
|Gold
Gold closed -$9 lower yesterday in a session where risk appetite was smashed and safe haven assets outperformed. This is not a great set up for gold bulls looking for a breakout of the medium term trading range. Technically, there is a near term positive bias still within the range as the market is still eyeing a test of the $1744 June resistance, however we see the ranging configuration re-asserting once more. The RSI rolling over again for another lower high around the mid-50s, whilst MACD lines meekly edge higher does not bode especially well for this being the time where gold breaks higher. There is still a move that is holding on to the near term pivot band support $1720/$1725 (shown well on the hourly chart) this morning. The hourly chart also shows a five day recovery also intact, whilst the hourly RSI holding above 40 will encourage the bulls. The question is whether this positive near term bias within the range can translate to a move that drives a breakout. Yesterday would have been an ideal day for such a move, but the bulls failed. Resistance at $1744/$1746 is the initial barrier, before $1753 and the key high at $1764. A failure back under $1720 today would once more neutralise the range.
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