Gold closed higher due to short covering on Tuesday and closed above the 38% retracement level of this year's rally crossing. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but remain bearish signalling that sideways to lower prices are possible near-term. If it extends the decline off June's high, the reaction low crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a low has been posted.
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