Gold prices are flirting with the 1,800 psychological level and the 20-day simple moving average (SMA), which are acting as strong support zones. The stochastic oscillator is ticking higher above the oversold area, creating a bullish cross within the %K and %D lines. Moreover, the RSI indicator is edging marginally up near the neutral threshold of 50.
If the price remains above the 1,800 round number, it could open the door for the immediate resistance lines such as the 40- and 100-day SMAs at 1,819 and 1,823 respectively, before the bulls visit the 38.2% Fibonacci retracement level of the down leg 2,074.89-1,676 at 1,828. Slightly higher, the 1,834 resistance is positioned ahead of 1,855. Steeper increases could move the market until the 50.0% Fibonacci of 1,875.
In the negative scenario, a successful attempt below 1,800 could open the way for more negative pressures towards the 23.6% Fibonacci of 1,770 before hitting the 1,750 support. Below that, the 1,723 barrier, registered in April 13, may halt bearish actions.
To sum up, the yellow metal has been in a neutral-to-bearish bias in the short-term timeframe as it holds between the SMAs and fails to improve any positive moves.
