- Gold creates new bullish wave
- Technical oscillators endorse upside momentum
Gold prices skyrocketed to another all-time high of 2,732 earlier today, continuing the strong bounce off the 2,600 support level. The price successfully jumped above the ascending channel, which has been standing since the beginning of June, endorsing the bullish structure.
Technically, the RSI indicator recently jumped above the 70 level, and the stochastic oscillator is rising in the overbought region. Both confirm the positive momentum in the market.
If the commodity continues the aggressive buying interest, then it may meet the next round numbers, such as 2,800 and 2,900.
On the other hand, a decline beneath the previous highs of 2,688 could slip towards the 20-day simple moving average at 2,660 before resting near the 2,600 barricade. A drop lower could open the way for the 50-day SMA at 2,577 ahead of the long-term uptrend line near 2,565.
In summary, gold prices are exhibiting significant increases, marking the fifth consecutive positive day. A decisive movement below the ascending trend line may change the outlook to neutral.