Technical analysis update: XAUUSD (10th November 2021)

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Today gold broke above important resistance level at 1835 USD and reached temporary high at 1868.626 USD per ounce. Breakout above 1835 USD resistance is particularly bullish development for gold as we noted in our previous ideas. We anticipated this move for a while now; and we stated that once this resistance level was taken out, then resumption of an uptrend in gold would follow. We continue to mantain this notion and we are very bullish on gold . We will observe price action in the following days and we will look whether gold manages to stay above 1835 USD level which currently acts as short-term support.

Our short-term price target of 1850 USD was taken out. Because of that we would like to change our medium-term price target of 1875 USD to short-term price target. Similarly, we would like to change long-term price target of 1900 USD to medium-term price target.

Technical analysis - daily timeframe
RSI is very bullish . We will observe it for strength to perform crossover into overbought territory. We expect such phenomenon to be accompanied by further rise in price. MACD and Stochastic are bullish too. DM+ and DM- also started to turn bullish . However, ADX signals that trend continues to be neutral. We would like to see ADX start growing as it would confirm resumption of an uptrend in gold . Despite that we are very bullish on gold and we expect price to continue climb higher.

Gold broke out above the neckline of inverted head and shoulders pattern we showed previously:
Neckline coincided with previous resistance level at 1835 USD (which now acts as short-term support).

Technical analysis - weekly timeframe
RSI is very bullish . It still has plenty of room for growth. MACD performs bullish crossover above 0 points which is very bullish . This could coincide with resumption of an uptrend of higher degree. Stochastic is also very bullish . DM+ and DM- are due to perform bullish crossover which would further bolster bullish case for gold . ADX is very low which is aligned with daily timeframe .

Our previous idea from 8th November 2021

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.
Comment: Gold seems overbought in short-term and it is possible that it will retrace below recent breakout level.