Gold restored after 2 days of sales
2023.02.06 07:10
Gold restored after 2 days of sales
Gold prices experienced a sharp bearish move the week before, breaking the uptrend line to the downside and losing more than 5% from the most recent ten-month high of 1,960.
The bearish trend was halted when the price reached a support level near the 1,864 50-day simple moving average (SMA). Near 50, the RSI is increasing in speed; Nevertheless, the MACD maintains its distance below its red signal line.
A downside reversal might stall at the 1,825 level before going after the crucial 200-day SMA at 1,765. In the longer term, another sell-off could occur if support is provided further below by the 1,725 area.
Otherwise, a successful rebound from the 50-day SMA could lead to the inside swing peak of 1,895, which is higher than the 20-day SMA’s level of 1,914. Even higher, the nearly ten-month peak of 1,960 would become increasingly visible; The 2,000 round number is also not too far above this point, which changes the outlook to be more positive.
Trading activity has taken place above both the 50-day SMAs and the 200-day SMAs, indicating that the medium-term picture is still largely bullish.
Overall, the short-term outlook seems mostly negative, but the medium-term outlook mostly stays positive.
