On the , the instrument is growing towards the upper line of . The price remains above its moving averages that turned horizontally. The is growing having broken out its longer MA. The Composite is testing its strong resistance.
XAU/USD , H4
On the 4-hour chart, the instrument is trading above the upper line of . The price remains just above the SMA200 and above the EMA14, EMA65 and EMA130 that turned up. The keeps testing the border of the overbought zone. The Composite is growing. Both indicators are forming a divergence with the price.
Support levels: 1228.00 (local lows), 1214.00 (May lows), 1207.00 (July lows).
Resistance levels: 1258.00 (local highs), 1277.00 (March 2016 highs), 1292.00 (April highs).
The price is approaching its long-term descending . There is a chance of a downward rebound while its breakout would lead to a growth continuation.
Short positions can be opened from the level of 1228.00 with targets at 1214.00, 1207.00 and stop-loss at 1235.00. Validity – 3-5 days.
Long positions can be opened form the level of 1258.00 with targets at 1277.00, 1292.00 and stop-loss at 1245.00. Validity – 3-5 days.