Is the Gold price gearing up for a range change? ($GLD)

By James Moore


The Gold price is increasingly becoming cornered between rising support levels and a relatively stable resistance zone. The commodity has been range-bound below $1400 for the past four years but a string of higher lows could potentially be the platform for a significant move. A higher low followed by a higher high is a positive indicator of bullish sentiment. $1362 was the most recent high and we have witnessed another higher low since that peak. A move above there, combined with a close above the red resistance line, presently around $1365, would be a hugely bullish signal.

The Relative Strength Index (RSI) is currently in the 50s which allows plenty of headroom for such a move, however lines of resistance and support also play out with this indicator –  It too is closing in on a juncture as the differential between RSI support and resistance narrows.

The Gold price recently dipped below its 50 DMA again after a convincing bounce off it 2 weeks ago.  Although currently above it, any prolonged period below the 50 DMA can only add risk to the downside.

Author: Stuart Langelaan


Author: James Moore

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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