Yesterday, we had a sell call on Gold (Gold Could Be Heading Back To 1483 ) Price reached our target of 1483 overnight and we make $15 out of its $30 range. We see a small rally today to 1486. There was a big drop in price but we think Gold could be in a range instead of starting a bear trend.
In the chart above, we can see last night’s decline was halted at the support level around 1480. There is a possibility of another test to the low and also the possibility of a break of 1480. However we see this possibility as low as Stochastic is into the oversold extreme and there is a bullish crossover. MACD may be bearish with both its lines below the zero line but MACD’s faster line is turning up.
If price is unable to break the 1480 low, we think price is likely to test initially 1496 and later 1504 again if it can move above 1496. For short term players, look to play the price movement towards 1496 with stop below 1480.