After four days of bearish mood in gold’s prices, this precious metal seems to be bouncing back on Friday but struggles to clear 21-DMA mark
After rejecting stiff resistance zone at 1343.731 on the daily chart, bulls seem to have completely lost momentum in buying interest; consequently, we’ve seen the price dips until this week’s lows of 1315.737 levels.
But for today, the prices are bouncing back to the current levels of 1326.730; the current prices are sensing resistance at 21DMA levels.
Even though the current RSI is converging upwards on daily charts, seems to be highly decisive to conclude with confirmation that strength in ongoing rallies persist or not.
In a medium term perspective, the precious metal hasn't been able to hold on to recent highs of 1375 levels, ever since then trimming gains from the last couple of weeks.
But on the contrary, very recently despite evidencing gravestone and shooting star patterns it could not push below 21EMAs (i.e. around 1307 levels, see weekly charts).
Meanwhile, you can also observe leading oscillators (RSI and stochastic) on this timeframe are converging downwards.
While MACD has shown a bearish crossover but above zero territory.
Overall, the current prices on weekly charts drift in sideways, holds strong supports at 1307 but we foresee a short-term bullish swings, gold prices have little changed on Friday, as mixed U.S. data released on Friday weighed on the dollar and as sustained concerns over the European banking sector pushed traders to turn to safer assets.
Keeping speculative objectives in mind we can buy one touch binary calls upon break-out above resistance of 1327.579 levels.
