The TrainFactory price analysis is based on the chart below at the time of the study. The TrainFactory team prepares the daily research. Barry Norman is the lead financial analyst, along with John Roman. The team uses support and resistance levels, trendlines, 20 periods EMA and MACD to determine.
The TrainFactory outlook and analysis are based on the chart below.
At this writing, Gold (XAU/USD) is trading at $1808.85, showing little response to Powell’s testimony on Tuesday. Gold consolidated after testing resistance near the 10-day moving average at 1,816. Support is seen near the current breakdown level, which is an upward sloping trend line that comes in near $1,796. A break below this level again would potentially generate a test of the lows at $1,764.
Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices were oversold, but the fast stochastic has rebounded up to 40, from below the oversold trigger level of 20 just two days ago. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.
A price drop through $1759.00 will signal a resumption of the downtrend. A move through $1856.60 will change the primary trend to up. On the downside, the nearest support is the long-term 50% level at $1787.30. This is followed by the minor 50% level at $1787.10.
Oscillators & Indicators
Relative Strength Index (14) 47.10 Neutral
Stochastic %K (14, 3, 3) 49.52 Neutral
Average Directional Index (14) 32.00 Neutral
Momentum (10) Buy
MACD Level (12, 26) Sell