Gold reached an eleven-month high of 1365.14 during the previous week, while at the end of the weekly session it retreated. The price has been trading within a trading range since January 25 with upper boundary the 1365 resistance level and lower boundary the 1307 support level.
From the technical point of view, in the 4-hour chart, the RSI indicator is sloping slightly to the downside in the positive territory, while the %K line of the stochastic oscillator posted a bearish cross with the %D line, suggesting an increase in the bearish mode. The price is moving above the mid-level of the Bollinger band (20-SMA) as well as above the 40-SMA.
In the wake of negative pressures, the market could meet support at 1333, which overlaps with the lower Bollinger band. A successful close below this level could see a retest of the previous low of 1320, taken from the bottom on April 6.
However, if prices are able to break the 1348 resistance level in the next few sessions, the risk would shift to the upside, with the upper Bollinger band coming into focus near the 1356 price level. A drop above would signal a resumption of the upward rally until the 1361.40 barrier.
