Gold Stumbles
Gold closed sharply lower on Tuesday due to profit taking as it consolidates some of the rally off December’s low. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning neutral hinting that the corrective rally off December’s low might have or is coming to an end. If February extends this rally, the reaction high crossing at 1170.20 is the next upside target. Closes below the 20-day moving average crossing at 1115.10 would confirm that a short-term top has been posted. First resistance is Monday’s high crossing at 1163.00. Second resistance is the reaction high crossing at 1170.20. First support is the 10-day moving average crossing at 1121.10. Second support is the 20-day moving average crossing at 1115.10.
Categorised as: Gold News