Technical Analysis – Gold stands within sideways channel
Gold eases beneath near-term SMAs
Stochastics post positive divergence
MACD strengthens bearish momentum
Technically, the stochastic is moving higher, creating a positive divergence as long as the price creates lower lows and the oscillator posts higher highs. This is a sign of a potential upside retracement in the market. However, beneath its trigger and zero lines, the MACD is extending its decline to the downside.
In case of more decreases, it could open the door for a retest of the previous trough of 2,470, while a break beneath the consolidation area may drive the bears until the 200-period SMA at 2,452. A slip below this area may switch the short-term outlook to bearish.
On the flip side, a rally above the 20- and 50-period SMAs, as well as a climb beyond 2,507, may take traders to the previous peaks of 2,528 and 2,531.66.
In summary, the precious metal remains neutral in the near term, with only a rise above 2,531.66 or a fall below the 200-day SMA indicating the next direction in the market.Related Assets
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