Gold closed higher on Monday
Monday 27 July 2009 at 5:07 pm
Gold closed higher on Monday as it extends last week’s trading range. The mid-range close sets the stage for a steady 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 August extends this month’s rally, the reaction high crossing at 966.70 is the next upside target. Closes below the 20-day moving average crossing at 935.00 would confirm that a short-term top has been posted. First resistance is today’s high crossing at 960.00. Second resistance is the reaction high crossing at 966.70. First support is the 10- day moving average crossing at 944.60. Second support is the 20-day moving average crossing at 935.00.