Gold Shines into the Weekend
The precious metal is on track to post a more than 2% pullback this week, revealing a strong reluctance to break below the psychological 1800 level. The well-established 1800 level provided sufficient value for bulls to send gold higher this week. The next major level ahead appears at 1875, a level that has proven to be a pivot point in the past, limiting prior bullish price action.
Gold Weekly Chart
The daily chart at the end of the London session sees gold trading well above 1833, the tripwire for an extended move higher. With the precious metal on track to close above 1833, it is necessary to identify future potential levels of resistance into next week.
The 50-period simple moving average (SMA), often used to gauge the medium-term trend, retains its upward slope and presents the next level of resistance, followed closely by 1875. Thereafter, a return to the zone of resistance at 1910 becomes relevant.
Should bears overwhelm bulls now that prices have move a fair amount off the low, support remains at 1833, followed by the big 1800 level. The imminent MACD crossover suggest momentum is turning, reinforcing the bullish bias.
Gold Daily Chart
The 4-hour chart reveals intra-day levels of note, as gold currently tests 1847.50. The last two candles and the current 4-hour candle suggest a fair amount if resistance at this level after approaching and respecting the level. A break and hold above this level certainly reinforces a bullish bias but necessary follow through may have to wait for next week. A failure here, could see prices head back towards 1833.
Gold 4-Hour Chart
Chat now!
Add a Comment