Gold Price Prediction - Prices Consolidate Near Resistance as Housing Prices Rise
Gold prices consolidated after testing resistance near the 10-day moving average at 1,816. Support is seen near the recent 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 November 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. The MACD histogram is printing in the-red with a flat trajectory which points to consolidation.
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