Gold: hugging tight to the uptrend gives the bulls very little room for comfort [Video]
|Gold
We have been turning increasingly cautious of the rally on gold in the past few sessions. Hugging tight to the uptrend gives the bulls very little room for comfort and the corrective reaction to Friday’s bull candle is a concern. An unwind back yesterday has again slipped lower today and we are seeing an early intraday breach of the uptrend (at $1574 today). The 23.6% Fibonacci retracement around $1572 is a basis of support but the low that the market really needs to watch is at $1562 which is the first real higher low of the bull trend. Momentum also needs to be watched and we have been increasingly cautious in recent days. The MACD lines are still slipping back, whilst if the RSI closes below 60 it would be a six week low (a divergence which is not a good sign in a six week uptrend). The resistance is clear at $1591 (yesterday’s failure high). We are though mindful that the Coronavirus is still very prevalent and is worsening by the day, so simply breaking the uptrend does not mean a renewed corrective move. It is just that the bulls are struggling now.
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