Yesterday's gold price just perfectly answered our question about whether the price will continue to rise. As far as the global stock price continues fluctuating with relatively higher downside risk, and regional conflict issues keep rising, investors are likely to choose gold as their risk hedging asset for a period of time. Therefore gold price is expected to go up further.
Technically, Fibonacci 50% which is also 1225 shows very strong support power that I consider it as the first level of support. I would also expect 1229 to offer the first level of resistance since it's the highest point on July 31st. 1235 is the second level of resistance due to the fact that this level is the double roof on July 19th and 26th. SO formed a gold cross at around 30 means that price is currently going up but very lack of momentum. RSI wanders around 50 also confirms that the weight of buying and selling power is somewhat uncertain.
1. If the price retreats to 1225 and the support line holds, we shall take a long position to 1235 and stop loss at 1222.
2. If the price breaks through the first resistance at 1229, we can also take a long position to 1235. Stop loss at 1224.
Technically, Fibonacci 50% which is also 1225 shows very strong support power that I consider it as the first level of support. I would also expect 1229 to offer the first level of resistance since it's the highest point on July 31st. 1235 is the second level of resistance due to the fact that this level is the double roof on July 19th and 26th. SO formed a gold cross at around 30 means that price is currently going up but very lack of momentum. RSI wanders around 50 also confirms that the weight of buying and selling power is somewhat uncertain.
1. If the price retreats to 1225 and the support line holds, we shall take a long position to 1235 and stop loss at 1222.
2. If the price breaks through the first resistance at 1229, we can also take a long position to 1235. Stop loss at 1224.