After touching 1875 support, gold bounced back to 1920 resistance. That was almost $50 move within 2 trading sessions.
Now gold is back under 1900 when traders took profit after gold fails to move above 1920 and looked into the weekend.
4-hour chart shows gold is re-testing the downtrend line that it broke out today.
Noted that gold has made divergence on both MACD and RSI indicators. The MACD hitogram divergences showed sellers run out of steam.
1890-1895 seems to be a PRZ with a possible swing back to 1950.
We recommend traders to go long around 1890-1895 with a tight stop loss just under the last low made at 1872, and target should be 1950.
Now gold is back under 1900 when traders took profit after gold fails to move above 1920 and looked into the weekend.
4-hour chart shows gold is re-testing the downtrend line that it broke out today.
Noted that gold has made divergence on both MACD and RSI indicators. The MACD hitogram divergences showed sellers run out of steam.
1890-1895 seems to be a PRZ with a possible swing back to 1950.
We recommend traders to go long around 1890-1895 with a tight stop loss just under the last low made at 1872, and target should be 1950.
Trade active:
Got half contract @1895
Trade closed: stop reached:
SL@1871. A loss of $24/ounce
