Technical analysis update: XAUUSD (14th October 2021)

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold soared after inflation print yesterday. Today it broke above 1800 USD. Currently price is creating setup for inverted head and shoulders pattern which is very bullish development for XAUUSD . We continue to maintain bullish stance on gold and we expect eventual breakout above resistance that lies near 1840 USD pricetag. Our short-term price target of 1850 USD remains unchanged. Same applies to our medium-term price target of 1875 USD and to our long-term price target of 1900 USD.

Technical analysis
RSI , Stochastic and MACD are very bullish . Gold resumed its bullish trend as is implied by DM+ and DM-. However, trend is very weak at the moment. It is possible that gold will continue to move sideways for little longer before eventual breakout to the upside. We continue to be very bullish on gold and we expect new all time high over next 12 months.


Support and resistance
Short-term resistance appears around 1840 USD. This is very important price level and it coincides with neckline of forming inverted head and shoulders pattern (which would be validated if neckline was penetrated). Another strong resistance lies around 1916 USD. Major resistance sits at all time high of 2075 USD. Short-term support continues to rest at 1750 USD while major support appears near 1676 USD.

Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Trade closed: target reached