Tradersweekly

Technical analysis update: XAUUSD (8th November 2021)

Long
OANDA:XAUUSD   Gold Spot / U.S. Dollar
XAUUSD trades just 10 USD below its short-term resistance. We will observe gold in the following days and we will look for potential strength that could elevate price above short-term resistance. In our opinion such occurence would be very bullish development for gold . Indeed, we expect it to cause resumption of uptrend in gold . Because of that we continue to be very bullish on gold and our short-term price target is 1850 USD. Our medium-term price target is 1875 USD and long-term price target is 1900 USD.

Technical analysis
We expect price to continue climb higher as MACD , RSI and Stochastic are all very bullish . Though, ADX contains low value which suggests that trend remains neutral at the moment. Despite that we are bullish as we expect breakout above short-term resistance and eventual resumption of uptrend.

We previously showed inverted head and shoulders pattern being formed.
We later stated that pattern was taking too long to form and we abandoned it. However, resistance level at 1835 did not lose any importance. It is still valid level for breakout as it coincides with short-term resistance.

Support and resistance
Short-term resitance sits at 1835 USD while short-term support lies at 1750 USD. Next important resistance sits at 1916 USD and then major resistance appears at 2075 USD. Major support level sits at 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 active: Breakout above short-term resistance occured.
Trade closed: target reached