Gold has been restricted to a narrow trading range of $1248-$1262 for five days now. As of now, the probability of a downside/upside break appears 50-50.
We have had bullish price RSI divergence…but the follow through has been weak. Furthermore, Yellen is more likely to come out hawkish than dovish later today. Thus the metal could revisit last week’s low around $1240.
On the other hand, daily MACD shows loss of bearish momentum, hence a potential for a strong rebound from $1253 (23.6% Fibo of 2011 high – 2015 low) exists.
Overall, bears would need a daily close below $1240, while bulls are likely to pounce on any opportunity above $1262.
We have had bullish price RSI divergence…but the follow through has been weak. Furthermore, Yellen is more likely to come out hawkish than dovish later today. Thus the metal could revisit last week’s low around $1240.
On the other hand, daily MACD shows loss of bearish momentum, hence a potential for a strong rebound from $1253 (23.6% Fibo of 2011 high – 2015 low) exists.
Overall, bears would need a daily close below $1240, while bulls are likely to pounce on any opportunity above $1262.
