Gold’s latest positive incline is finding assistance from the climbing Ichimoku lines after finally being able to shake off the one-month sideways market, which the commodity adopted from the second half of March. The recent upturn in the slopes of the 50-and 100-period simple moving averages (SMAs) has now aligned with the 200-period SMA that continues to sponsor the broader uptrend.
The ascending Ichimoku lines are indicating positive forces are intact, while the short-term oscillators are conveying mixed messages in directional momentum. The MACD has stabilized above its red trigger line in the positive region, while the RSI is regaining ground in the bullish zone. The stochastic oscillator is now reflecting some fading in its negative charge and may start to promote upside price action.
If the Ichimoku lines continue to keep the price buoyed, bullish friction could originate from the nearby 1,979 barrier. If persistent upside pressures conquer the 1,990-1,995 resistance band too, which was formed by the highs from the first half of March, and overrun the adjacent 2,000 psychological mark, buyers could then gain confidence to challenge the March 10 peak of 2,009. Additional progress in the precious metal may subsequently pilot the price towards the 2,035 resistance.
Otherwise, if positive impetus fades, initial support could arise from the red Tenkan-sen line at 1,964. Further ebbing in the price of the yellow metal may test a potential supportive trendline pulled from the 1,915 low ahead of the blue Kijun-sen line at 1,950. From here, should the support region between the 200-period SMA at 1,943 and the 100-period SMA at 1,936 fail to defend positive developments, sellers may begin to enhance their advantage. Moreover, a dive in the price past the cloud and the 1,915-1,920 base could encourage sellers to target the 1,890-1,900 key support foundation.
Summarizing, Gold’s bigger positive structure is being defended by the border of 1,878-1,886 and the 1,890-1,900 support foundation. The commodity could maintain its climb should the Ichimoku lines continue to champion more gains. For the positive outlook to deteriorate, the price would need to sink below the supportive line and the SMAs.
