Gold Short-term Technical Support and Resistance Level
The daily chart of gold shows that the price is holding above all its moving averages, with the bullish 20-day simple moving average (SMA) accelerating to around $2540 and also above the bullish longer-term moving average.
Meanwhile, technical indicators lack directional strength, but remain well above their midpoints, limiting downside opportunities. In the short term, the corrective slide in gold prices continues according to the 4-hour chart.
Gold prices are currently battling the bullish 20-period SMA, while the 100-period SMA and 200-period SMA are gaining upside traction at levels well below current gold prices.
Finally, technical indicators are slightly lower and momentum indicators are close to the 100 line. The overall picture is not yet strong enough to suggest a sharper downtrend ahead.
However, a significant drop below the $2,500 per ounce mark could open the door for gold to extend its corrective move in the coming trading sessions.
Support levels: $2496; $2485.10; $2427.
Resistance: $2510; $2523.50; $2535
To summarise, trading continues to be a buy trade!
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