The Wall Street Examiner
APR 10, 2018
The gold price continues to edge northward for yet another challenge of the resistance in the $1,340s, en route to the huge chart gap between $1,400 at $1,700+. As it builds the base for liftoff, time to accumulate on the cheap may be drawing to a close.
Gold prices may have seemed volatile last week, but they’ve actually been trending steadily higher and are on the verge of a bullish breakout.
To the untrained eye, it may be looking kind of directionless lately.
Gold’s been trading between $1,310 and $1,365 for the entire first quarter of 2018. In the near term, the RSI is near mid-range and doesn’t provide much indication of near-term direction. But the MACD is trending higher, and the 200-day moving average also continues to trend solidly upward.
If we step back and look at Gold’s action over the past couple of years, another picture emerges.
Gold has maintained its upward trendline, which has acted as support for new higher lows since late 2015. We also can see an upward trend channel, with the top line acting as overhead resistance.
The top of that channel is near $1,400, which is certainly a threshold that’s likely to get a lot of observers excited about gold.