Monday, Gold prices broke out of the range, and are set to test higher marks as positive momentum begins to accelerate North.
The 1st level of target resistance is seen near the May 2013 highs at 1,478.
Short term support on gold prices is seen near the recent breakout mark at 1,453.
Short term momentum has turned positive as the fast stochastic generated a crossover buy signal.
The fast stochastic accelerated higher and is now printing a reading of 84, above the overbought trigger level of 80 which could foreshadow a correction.
Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) generated a crossover buy signal.
This occurs as the MACD line (the 12-Day MA minus the 26-Day MA) crosses above the MACD signal line (the 9-Day MA of the MACD line).
The MACD histogram is printing in the black with an upward sloping trajectory which points to higher gold prices in here.
The Big Q: Will gold cut through the round psyche resistance in August.
We wait, we see…