Price is moving higher, both in the short and longer term basis, though price right now is facing resistance at 1500 psychological level. The longer term trend of price is still up as it is above its weekly moving average (chart 3) and the 2- year uptrend line is still intact (chart 2).
In the shorter term, price is trending up as it continues to make sequence of higher high: 1450, 1480 and 1500. Price is also above its moving average. Do note however, RSI showed that upward momentum has weakened in the past few days (chart 1).
It is clear that 1500 is the immediate resistance, given the round number which also confirmed by price action, where price consolidated between 1488 and 1500 for almost 2 days now. Therefore, expect price to trend in the direction of break.
Given the trend, price is expected to break above1500. Daily stochastic is still signals buying mode (chart 2) and the recent consolidation can be seen as easing the shorter term overbought condition. Nonetheless, the level could be hard to break and may require further consolidation. If that is so, the break and close below 1488 should be the first sign. Further support expected at 1477, a prior high and recent RSI oversold level (chart 1), and recent lows of 1450 and 1410.
Do note that the Gold producers’ index has yet to confirm the new high set by gold. A close above 600 would be great for the uptrend, adding to the already confirming silver. A failure to close above 600 could be a cue for a strong resistance at 1500.
