While bullish in the long term, we are still awaiting further pullback in the price of gold after its impressive run above $2,000. Right now, we are paying close attention to support and resistance levels near $2,009, $1,985, and $1,959. If the price of gold manages to hold above $1,985, it will be positive; the same applies to the breakout above $2,000 and resistance near $2,009. However, if the price fails to stay above the mentioned level, and we see more decline in RSI and Stochastic on the daily chart, it will alert us to more downside; in such a case, we would expect gold to drop below $1,960 (and maybe even to as low as $1,925). Yet, regardless of our opinions, it is important to note that there is a FOMC meeting scheduled for today, which can have a volatile impact (to either side) on the price depending on the FED’s decision and the chairman's tone during the press conference.
Illustration 1.01 Illustration 1.01 portrays the daily chart of XAUUSD and simple support/resistance levels derived from particular peaks and troughs.
Illustration 1.02 The image above shows the daily chart of RSI. The yellow arrow indicates a bearish crossover below 70 points, which raises our suspicion (though it still could be just a fakeout).
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
I would pay attention to the volume density (indicator on the left) and a few levels on the chart
RLinda
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Strangely, for some reason my chart didn't get added
Well, it must be a bug or they removed this feature.
In general, for me the important role is played by the density of 1875-1880, and the level of 1984.
But now the market is forming the range 1978 - 1997. Before an upward spurt, 1984, 1978 support can be tested in a false breakout format. Since the scenario with DXY is defined for us in the medium term (weak market), we can build an approximate strategy for gold.
Tradersweekly
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@RLinda, Thank you very much for your input and the donation. It is much appreciated. I send best wishes your way!
Thanks for posting. Great chart and analysis. Top shelf work for sure.
Tradersweekly
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@musclemilk0075, Thank you so much. Your kind words are much appreciated!
MarkLeRoy
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Looking at this years data I have FVP @ 1968, should Gold reach above 1975 i shall enter long position holding for the 2000 range to be hit within the next 2 to 3 weeks.
Tradersweekly
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@MarkLeRoy, Cool, thank you for the comment, and have good luck with your trade!
Williamforex
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great setup my friend. I always Prefer analysis and explaination like this. same point of view
I would pay attention to the volume density (indicator on the left) and a few levels on the chart