Commodities

Technical Analysis – Gold surpasses 23.6% Fibonacci mark, extending gains

Posted on February 5, 2018 at 2:23 pm GMT

Melina Deltas, XM Investment Research Desk

Gold is trading higher in the last few hours, following the strong rebound on the 1327 support level and successfully surpassed the 23.6% Fibonacci retracement level at 1335 of the last big upward movement with the low of 1236 and the high of 1366. In the 4-hour chart, the technical indicators seem to be turning positive.

The short-term technical indicators seem to be turning positive and point to more strength in the market. The RSI indicator is pointing sharply to the upside, below the 50 level, while the MACD oscillator is slightly rising in the negative territory. Technical indicators are signaling further gains in the near-term.

Currently, the price is extending the bullish tendency and is headed towards the 1350 resistance level. However, the precious metal needs to go through the 20 and 40 simple moving averages in the 4-hour chart.

Conversely, downside moves are likely to find resistance at 1327 and if the price breaks the aforementioned obstacle, it could open the door for the 38.2% Fibonacci mark at 1317.

commodities gold

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