Could Gold Post a New Up Leg After its Support Hold?
Today’s focus Gold
Pattern Support hold off resistance/trend continuation
Possible targets 2040 – 2050
Resistance – 2010 – 2040 -2047
Indicator support – Price above EMA
Gold continues to interest us from 1990.50. This level has maintained support for buyers since the 10th of this month. This area was previous resistance that has now become support. That’s a good sign for buyers, and seeing such a strong reaction against sellers is another good sign. Overall we can see a healthy trend structure with price starting to form a new fast trend point above the longer-term uptrend.
Buyers continue to build on gains today against weaker USD and stock indexes. Is all of it simple accumulation against a weaker USD, or is there also a flight to gold with stocks moving lower? Price remains above the MA.
This could become a support hold push higher if buyers can be posted a solid close higher today. This could also become a new continuation if buyers can hold their drive above support.
If we see a new fall below support and if the new forming fast trend is broken, we would be wary of looking for further upside. Buyers need to maintain support and keep pushing to break this week’s highs.
If we do see a new leg higher, 2040 – 2047 could present resistance.
Gold Daily Chart
Thanks for stopping by. Good trading, and have a great day.
* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.
Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.
Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.