Gold is just hanging around $4,713, unable to make much headway after it got knocked back down from a run at the $4,800 ceiling. That particular spot has become a real dealbreaker, with plenty of signs of selling pressure from all the candles that got rejected there – lots of ’em too, with those long wicks pointing upwards showing that buyers just aren’t stepping up.
The 50-day moving average is basically flatlining at the moment, while the 200-day average is capping any potential upside just shy of the $4,800 mark, which just adds to the sense of resistance. The RSI is hovering around 55 too, which is just about the perfect spot – not showing any real clear divergence or anything. Just wait for a breakout above $4,800 and you might see a sudden dash to $4,855 and $4,978 on the cards, but on the flip side, if the price slips below $4,698, then the potential pullback gets a lot deeper.
Trade idea: If you want to get in on the action, then buy the price as soon as it manages to bust above $4,800 and aim for a $4,855 landing spot – just don’t forget to set a stoploss in place below $4,698, just in case.