Strong -up momentum
Strong up momentum was exhibited today by the relatively broad trading range and the entire green candlestick pattern. Buyers took control at the opening of the session of the day and they remain the lead as the end of Tuesday’s session approaches. This does not mean that gold will continue to rise for a pullback, but that could certainly be. As noted, an increase above today’s high -high will have to contend with potential resistance around the top of a previously identified price range at $ 3,043. If that high is not exceeded more than a day of rest that takes the form of an within day, could occur, or the start of a Bearish pullback could begin.
Support in the short term for $ 2,999
A drop below the low point of $ 2,999 would indicate the weakness and a probably deeper withdrawal to test the support levels. The most important potential support levels are at the earlier highlight of $ 2,956, followed by the 20-day MA at $ 2,931 together with an earlier interim swing High at $ 2,930. Since two indicators mark a similar potential support area, that area must be given extra meaning if it is approached.
Bullish on all time frames
Gold is Bullish on all frames and there is uncertainty in the global economic background. Although the overbough is on the RSI gold, it could certainly be higher if extra bullish signals are activated. Moreover, at some point there is the possibility of an accelerated rally considering the growing economic uncertainty. With that in mind, the top trend channel line mentioned above can offer extra insight if it is approached.
Look for a look in all the economic events of today Economic calendar.