The price of gold is making a comeback after touching the lower band of the Bollinger Bands, a commonly used technical indicator for identifying overbought or oversold conditions. This rebound is further validated by movements in the Commodity Channel Index (CCI), which is beginning to rise from the oversold territory, signaling a bullish trend for investors.
The Bollinger Bands indicator suggests that gold prices have reached their lower limits, indicating a fading selling pressure. Meanwhile, the CCI’s readings that exceed -100 point towards a potential strengthening of the market due to an uptick in buying interest.
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In the above 15-minute chart, gold still exhibits bullish potential as the Bollinger Bands are in a sideways condition, with prices hovering near the lower boundary. If this scenario unfolds, gold could rise towards a resistance level of $2,633.00 per troy ounce.
Technical Reference: Buy while above $2,612.00
Potential Take Profit 1: $2,629.00
Potential Take Profit 2: $2,633.00
Potential Stop Loss 1: $2,615.00
Potential Stop Loss 2: $2,612.00
