Technical analysis Gold – Autumnal comeback ambitions

10.10.2017 – 05:00 pm: Gold has been showing up again since last week, and also chart technics seems to underline the autumnal comeback ambitions of the yellow shining metal. Thus, the stochastic oscillator leaves the oversold indicating corridor and sends a bullish signal after the intersection of the signal/trigger line from bottom to top.

Looking at the chart, gold was not too much in trouble anyway. Since the beginning of September a consolidation of the previous upward movement was observed. With the present day Gold seems to be ready for leaving the resulting downtrend channel up to the north. A test of the support regions at round about 1,200 USD (= lower shift zone limitation of this summer), at approx. 1,250 USD (= MA200) as well as at approx. 1.185 USD (= superior, long-term upward trend) was not necessary.

Currently it would be important to overcome the resistance region at 1.290 USD. In this area the upper limit of the shifting zone this summer as well as the sliding 50-day average (MA50) are located. Should gold be able to sustain this price level from the chart-technical point of view, further upside potential up to around 1350 USD per ounce (= top of the year) could be activated. If the turnaround to be observed since last week fails on the other hand the aforementioned support regions represent potential areas of support.

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