Gold is trading higher this morning as it rebounds off last week's low. Stochastics and the RSI have been turning neutral to bullish hinting that a short term low might be in or is near.
Closes above the 20 day moving average crossing at 1750.70 are needed to confirm that a short term low has been posted. If December renews this month's decline, the 38% retracement level of the 2008-2011 rally crossing at 1476.20 is the next downside target. We will be focused on price action around 1705.40 as many traders are seeing that as the neckline for gold.
First resistance is the 10 day moving average crossing at 1676.10. Second resistance is the 20 day moving average crossing at 1750.70. First support is last Monday's low crossing at 1535.00. Second support is the 38% retracement level of the 2008-2011 rally crossing at 1476.20.
Do You Understand How Divergences Work in the Market?
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