For the past 6 months two technical indicators have been making very accurate calls on the gold price. When used in combination the RSI, or Relative Strength Index and the William %R have been issuing very timely buy and sell signals.
As the chart below show, the RSI, which is considered overbought when above 70, has been flagging sell signals (the red circles), while the William %R has been flagging the buy signals (green circles).
The combination of the two indicators is useful for those trading gold’s short-term moves and is also useful for those looking to time their entry to the gold bull market.
The next resistance for gold will be the all-time record close of $1,557 an ounce made on 2 May.