Gold Prices Rally Towards Daily Resistance at $1375.03
- Gold Prices Trade to a New Monthly High at $1,360.69
- Key Daily Resistance for Gold is Found at $1,375.03
- If you are looking for more trading ideas for Gold check out our Trading Guides
Gold prices are rallying for the 3rd consecutive session and have printed a new monthly high at $1,360.69. However, traders should note that Gold prices are still trading in a technical range. Resistance for the daily range depicted below is found near the August 2016 high at $1,375.04. If the price of Gold fails to break through this point, it opens the commodity to turn lower back towards support at $1,310.71.
GOLD, Daily Chart
(Created by Walker England)
In the 3 minute graph below, we can see short term price action for gold trading off of this morning’s session low at 1,347.02. The Grid Sight Index tracked this movement through a series of upward pointing historical distributions. Currently GSI has reviewed 43,826,375 pricing points, and in 62% of the 945 historical matching events prices have declined by a minimum of $1.00. The first bearish historical distribution line lies at $1357.00, and the current downward momentum has been highlighted by denoting a series of lower lows created in the last hour.
If bullish momentum is to return, traders should look for the price of gold to test the first bullish historical distribution at $1,360.30. Prices have risen $2.30 in just 23% of the 945 historical matching events. However if price action reaches this point, it opens up Gold to first test daily highs and the move on longer term values of resistance.
Want to learn more about GSI? Get started learning about the Index HERE.
Gold 3 Minute GSI Chart
Sentiment for Gold (Ticker: XAU/USD) remains negative with SSI reading at -1.25. With 56% of positioning short, this is typically taken as a bullish signal. In the event that gold prices breakout higher traders should look for SSI to move towards a negative extreme of -2.0 or more. Alternatively, if price action reverses lower, traders may look for SSI to return towards more neutral readings.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.