Gold prices are ticking up, following the rebound off 1,728 in the previous 4-hour sessions. However, in the broader outlook, the market has been bearish since September 3, but the technical indicators are confirming the latest upside momentum. The RSI is moving marginally up in the negative territory, while the MACD is ready for a bullish crossover within its trigger line below the zero level.
Get upto 5000 dollars in bonuses if you trade with XM
If the price continues to rise, immediate resistance could come from the 20-period simple moving average (SMA) at 1,746, which is acting as a strong barrier. Above this hurdle, the yellow metal could meet the 40-period SMA at 1,756, which stands near the falling trend line and the crucial level of 1,760. Overcoming these obstacles, the trend would shift to neutral, moving above the Ichimoku cloud, before hitting the next barrier of 1,780.
On the other hand, a decline again could take the bears towards 1,728 before creating a new lower low. Underneath this line, traders’ attention could shift to 1,717 and then at 1,680.
In conclusion, gold prices have been moving below the short-term descending trend line and only a significant close above the 200-period SMA may change this view to bullish.