Gold closed up on Wednesday and made its intraday high of US$1187.56/ounce after setting intraday low of US$1185.79/ounce. Gold went up by 0.04% at US$1186.44/ounce, noted the OptionBanque’s Technical Team.
Technicals in Focus:
In daily charts, prices are above 200DMA (1219) and breakage below will call for 1211-1205. MACD is above zero line but histograms are in increasing mode will bring more bullish stance in the upcoming sessions. RSI is approaching overbought region and downside is expected. The Stochastic Oscillator is in approaching overbought territory and giving positive crossover to confirm bullish stance for intraday trade.
Trading Strategy: Neutral
Based on the charts and explanations above; sell below 1189-1204 keeping stop loss above 1204 and targeting 1178-1174 and 1168-1160; breakage above 1204 will be buy call keeping target of 1216-1230.