Short-term bullish bias
Key levels: downside: 1312 / upside: 1320
After bouncing off the psychological level of 1280, bullion is attempting to reach the previous high above 1340 which could be a tough resistance to crack. Though the breach of both 20 and 30-day MAs has provided a solid argument in favour of a long bias. The RSI is yet to penetrate the over-bought area, suggesting there is still enough space on the upside.
On the 4H chart, the price has climbed up steadily along the MAs which have become significant support levels for the bulls. In case buyers maintain their interest, we could see a rally towards the next target of 1326. The hourly chart confirms the uptrend with a bullish MA cross. The RSI is approaching the 70 level, suggesting easing buying pressures as we near the 1320 resistance. Though a break above might trigger a strong upward momentum.
Should the price break the immediate resistance of 1320, an extended rally could ensue. The downside risk would be a break under 1312.