GOLD: testing intraday resistance
- Bollinger Bands bearish;
- ADX and DI bearish;
- RSI bullish.
The price of Gold bounced off both borders of Bollinger Bands and headed towards the middle line. The volatility jumped as a result, and BB lines spreaded the surplus. Nevertheless, the overall sentiment of the indicator remained bearish (see the four-hour chart setup below). If a test of the yellow curve failed, then we’d expect a renewal of the selling pressure.
The ADX and DI indicator is still bearish as the red line remains above the green one. The mainline is pointing to quite a strong momentum as it’s rigging in the positive territory. The RSI oscillator is also approaching the 50% threshold, which should identify further direction of the price action. A bullish breakout could lead to another test of the upper band of the Bollinger Bands indicator.
Pivot points:
R1: 1833.80 (BB middle line);
R2: 1873.85 (BB upper line);
S1: 1804.93 (recent bottom);
S2: 1794.68 (BB lower line).
