April gold closed higher on Monday and above the 38% retracement level of the September-December decline crossing at 1678.70 as it extends the rally off December's low. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.
If April extends the rally off December's low, the 50% retracement level of the September-December decline crossing at 1725.80 is the next upside target. Closes below the 20 day moving average crossing at 1622.90 would confirm that a short term top has been posted.
First resistance is today's high crossing at 1684.50. Second resistance is the 50% retracement level of the September-December decline crossing at 1725.80. First support is the 10 day moving average crossing at 1649.80. Second support is the 20 day moving average crossing at 1622.90.
Check out our gold trend forecast for the 1st Quarter of 2012
No comments:
Post a Comment