Gold Prices: Support at 200-day MA

If there is a case for Gold now could be the time. The 200-day was recently tested twice and held. Since the February top the commodity has traded within a loose bullish wedge.


There is a bullish divergence in the MACD histogram with a pending bull cross of the zero line in the offing (a break above the 20-day MA would set this off). Other technicals are oversold (stochastics) or improving (CCI). With a stop below $859 and a projected target around $1,100 the risk:reward is respectable.

Downsides are the downtick in the 50-day MA with a confirmed downtrend in the 20-day MA.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.