RSI (14) monthly chart- above 90 indicates overbought
CCI(50) monthly chart- Bearish divergence
Due to tariff worries and expectations for rate reduction, gold rose over 40% in the last five months in a heating zone. Having developed a double top at $4380, the valuable metal showed a little drop.
Near-term support - $4240. Any breach below will drag the yellow metal down to $4200/$4185/$4080/$4010/$3895/$3800.
Significant resistance - $4306. Any violation above this level will push the commodity to $4335/$4380/$4433/$4500.
It is good to sell on rallies around $4298-4300 with SL around $4382 for a TP of $4000/$3895.
