The 4H Gold futures chart GC1! is showing a stall in prgoress, after a two week massive rally that saw Gold move ~10% since 20 July.
Clearly, this is a late phase of the current rally, and MACD is showing bearish divergence upon retracement. In cases like these, Gold is now rangebound between the green and red resistance and support lines, respectively. It should break upwards or downwards in days to come, with almost equal bias for either case. The bull case is a continuation of the robust Gold uptrend an the bear case is a decent retracement that is just about due, having hit the 2000 target just (as earlier expected).
So, in other words, easily possible for slightly more upside just over 2000 in the coming week or two, BUT also may start a decent retracement upon break down.
Watch for it...
(Additional reading: reference relationship to silver rallies as well)
Clearly, this is a late phase of the current rally, and MACD is showing bearish divergence upon retracement. In cases like these, Gold is now rangebound between the green and red resistance and support lines, respectively. It should break upwards or downwards in days to come, with almost equal bias for either case. The bull case is a continuation of the robust Gold uptrend an the bear case is a decent retracement that is just about due, having hit the 2000 target just (as earlier expected).
So, in other words, easily possible for slightly more upside just over 2000 in the coming week or two, BUT also may start a decent retracement upon break down.
Watch for it...
(Additional reading: reference relationship to silver rallies as well)
