Spot gold extended its rally to fresh multi-month highs of $2,032.03 an ounce on Wednesday, correcting lower thereafter. Market players are taking profits ahead of the long holiday season, as many markets will be closed or down for two days over the Easter holiday weekend.
From a technical point of view, the daily chart for the XAU/USD pair shows that it has attempted to post higher highs and higher lows, which skews risk to the upside. The technical indicators in the above time frame are still in the positive zone, lacking directional strength but showing no signs of exhaustion. At the same time, the bright metal develops above the rising moving averages, with the 20 Simple Moving Averages (SMA) pointing firmly north on longer lines while below current prices.
In the short term, and according to the 4-hour chart, XAU/USD has lost its bullish momentum but is still far from turning bearish. Technical indicators pivot lower, but their downside power is limited while they hold in overbought indicators. Ultimately, gold remains much higher than the rising moving averages, with the 20 SMA providing dynamic support at around $1,991.20.
Support level: 2,009.70 1,991.20 1,982.10
Resistance: 2,024.90 2,037.85 2,050.00
Trading recommendation:
SELL GOLD 2029 - 2030
Stop Loss : 2033
Take profit 1: 2020
Take profit 2: 2010
Take profit 3: 2005
BUY GOLD 1990-1991
Stop Loss : 1988
Take profit1 : 2000
Take profit 2: 2010
Take profit 3: 2020
Note: Always install Stoploss and Takeprofit to ensure safety in trading
From a technical point of view, the daily chart for the XAU/USD pair shows that it has attempted to post higher highs and higher lows, which skews risk to the upside. The technical indicators in the above time frame are still in the positive zone, lacking directional strength but showing no signs of exhaustion. At the same time, the bright metal develops above the rising moving averages, with the 20 Simple Moving Averages (SMA) pointing firmly north on longer lines while below current prices.
In the short term, and according to the 4-hour chart, XAU/USD has lost its bullish momentum but is still far from turning bearish. Technical indicators pivot lower, but their downside power is limited while they hold in overbought indicators. Ultimately, gold remains much higher than the rising moving averages, with the 20 SMA providing dynamic support at around $1,991.20.
Support level: 2,009.70 1,991.20 1,982.10
Resistance: 2,024.90 2,037.85 2,050.00
Trading recommendation:
SELL GOLD 2029 - 2030
Stop Loss : 2033
Take profit 1: 2020
Take profit 2: 2010
Take profit 3: 2005
BUY GOLD 1990-1991
Stop Loss : 1988
Take profit1 : 2000
Take profit 2: 2010
Take profit 3: 2020
Note: Always install Stoploss and Takeprofit to ensure safety in trading
