MACD and Stochastic recently generated technical buy signals

The five-year gold price chart shows three attempts to date to overcome the red resistance line, which has stopped the price from rising twice since the previous high of 2069 US dollars in 2020. A new impulse to break through the resistance could currently emerge. On the downside, the blue upward trend lines are protecting the price for the time being. The six-month chart shows the details.

Source: Depositphotos

A slight downward trend can be seen in the summer months, which led to the gold price also breaking through the 200-day line to the downside – in addition, the downward crossing of the 100-day line through the 200-day line at the beginning of September was a medium-term technical sell signal. Three weeks later, the price plummeted to almost USD 1800. The massive upward impulse immediately afterwards (no doubt caused in part by the events in the Middle East) quickly overcame both average lines and even managed to break through the USD 2000 mark in October – although the 2009.42 mark has remained insurmountable since then despite several attempts.

The 100-day line has been rising again for six weeks, which is positive. In contrast, the 200-day line has been falling again for two weeks – albeit only minimally, so it can still be considered neutral.

The MACD and stochastic indicator recently generated technical buy signals (blue line crosses red line upwards). However, the stochastic indicator has already risen very high and could be on the verge of a sell signal. The trend confirmator has been holding above the neutral 100 in positive territory for five weeks – after the consolidation, it is already moving upwards again. In the more complex Directional Movement Index, two things are positive: the green line indicates the upward trend direction by crossing the red line and the rising blue line stands for increasing trend strength. The movement has not yet run hot, but the overbought/oversold indicator, with values at 1.0, has already covered half the distance from the neutral midpoint (value 0) to the overbought status (at 2.0), which has already been reached twice.

Whether a fourth attempt is made to reach the top at USD 2069 will depend on whether it manages to break significantly above the gray resistance line. Otherwise, a renewed decline towards the two average lines (approx. USD 1950) is likely.

Source: Depositphotos

Disclaimer: The contents of and all other used information platforms of the GOLDINVEST Consulting GmbH serve exclusively the information of the readers and do not represent any kind of call to action. Neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. Furthermore, they do not in any way replace individual expert investment advice, but rather represent advertising / journalistic texts. Readers who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. The acquisition of securities involves high risks, which can lead to a total loss of the invested capital. The GOLDINVEST Consulting GmbH and its authors expressly exclude any liability for financial losses or the content guarantee for topicality, correctness, adequacy and completeness of the articles offered here. Please also note our terms of use.

According to §34 WpHG we would like to point out that partners, authors and/or employees of GOLDINVEST Consulting GmbH hold or may hold shares of Brixton Metals and therefore a conflict of interest exists or may exist. We also cannot exclude that other stock market letters, media or research firms discuss the stocks we discuss during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between Brixton Metals and GOLDINVEST Consulting GmbH, directly or indirectly, which means that there is also a conflict of interest. Especially since GOLDINVEST Consulting GmbH is remunerated in this case for the reporting on the mentioned company.

Latest News

Latest Videos