You can be sure that Gold’ (XAUUSD’) found support back in August and is ready to make a strong move up. Let's take a look at the chart and see why I believe this to be true. Please allow me to entertain you for a few minutes...
So, let's get started.
Gold (XAUUSD’) Analysis by Alan Masters
We start by looking at the main chart above, which is set to the weekly time frame (1 week per candle), let's see what the chart has to say:
Let's start by looking at the red line on the chart, this is the moving average indicator EMA500.
This line worked as resistance before the 2016 Gold’ rally, after it was broken, Gold’ went up to $1375 in early 2016.
On the retrace, the price broke below EMA500 (marked with yellow square) just to bounce back up strong.
Today we are seeing the same pattern repeat itself. Gold’ broke below EMA500 for a few months just to bounce back up, and now trading above EMA10 (green line), which is the first step in a recovery from a my TA perspective.
The RSI hit oversold on August 2018 followed by a strong bounced.
Bullish MACD crossover.
Marked with a purple arrow, you can see strong bullish divergence on the RSI.
The bounce from support, breaking above EMA10 and EMA500, higher lows and bullish MACD crossover are all supported by hidden bullish divergence on the RSI.
We have the NASDAQ, DJI and SPX looking down, while XAU and BTC are looking up.
Based on the signals above, I believe that Gold’ (XAUUSD’) will be moving up.
Now, If you were entertained, please like and share.
Your support is highly appreciated.
Namaste.
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We are above EMA100 for the first time since April.
U should post more:)