20-day MA is important trend support
The most important dynamic trend support is determined by the 20-day MA, currently at $ 2,880. The Uptrend line offers a guide, but the 20-day line deserves more respect because the trend line can be broken while the support of the 20-day line is retained. That is why the 20-day line together with previous price levels can help determine the possible scope of a withdrawal.
Last week’s low point at $ 2,878 and the three -week low at $ 2,853 are weekly support levels to be up to date. The weekly pattern shows eight consecutive weeks of higher weekly highlights and higher lows, including this week. However, this week is not over and if the low of last week does not keep as support, the Bullish weekly pattern starts to change. This can lead to a deeper correction or further consolidation.
Bearish RSI Divergence
There is a bearish divergence that is shown in the relative strength index (RSI) and a decrease under a small swing low on the RSI line that has just been activated. This seems to support a deeper or longer correction. It certainly shows a weakening of the question. Nevertheless, the reaction around the most important price levels will help to offer a route map.
If the low point of three weeks at $ 2,853 is broken, lower prices will become more likely. A support test at the earlier trend height of $ 2,790 From October, a clear potential is downward target. It is followed by the 50-day MA, currently around $ 2,754. There is currently also an Uptrend line under the 50-day line. It must also offer guidelines if it is approached.
Strong recent performance
From the interim swing layer of $ 2,582 in December, rose by no less than $ 374 or 14.5% in 45 trading days, from the new trend of Monday of $ 2,956. That is a solid achievement, but also an indication that a certain degree of rest is needed before gold reads it to trends again.
Look for a look in all the economic events of today Economic calendar.