The Gold market is getting ready to breakout !!
Hello everyone, as we all know the market action discounts everything :)
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The Bears and Bulls have been fighting over control in the gold market near the 1800 level for a while now, looking at the chart we notice that the market is trading in a triangle pattern that seems to be leaning into the Bullish side more than the Bearish.
We will be seeing a Breakout after the market cross above or below any of the pattern borders which probably will be in the near future.
Possible Scenarios for the market :
The market is trading at $1801.210 at the time this was posted, The week started Bullish for the gold market and we could be seeing an early move that will lead the market to the first weekly resistance line located at $1817.90. where this bullish trend will be tested and if the Bulls were able to keep control then this move will lead the market back to the resistance zone located near $1900.
On the downside, $1,780 (50-day SMA) aligns as the first support ahead of $1,770 . Sellers are likely to maintain control of the action as long as the above-mentioned resistance holds.
Technical Indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The MACD is above the 0 line indicating a Bullish market, With a positive crossover between the MACD line and the Signal line.
3) The RSI is at 60.14 showing Great strength in the market. no divergences were found.
Weekly Support & Resistance points :
support Resistance
1) 1763.36 1) 1817.90
2) 1734.25 2) 1843.33
3) 1708.82 3) 1872.44
Fundamental point of view :
On Thursday, the European Central Bank (ECB) will announce its Interest Rate Decision and release the Monetary Policy Decision Statement. In case the ECB event highlights the policy divergence with the Fed, the greenback could regather its strength and bring forth XAU/USD weakness.”
“The US Bureau of Economic Analysis will release its first estimate of third-quarter Gross Domestic Product (GDP) growth. On a yearly basis, the GDP is expected to expand by 3.2% following the 6.7%. A GDP reading near the market consensus could trigger another leg higher in US T-bond yields. On the other hand, a big miss could cause investors to price in a delay in the reduction of the Fed’s asset purchases and weigh heavily on the dollar.”
it's difficult to say that the outlook is bullish unless gold makes a decisive move above the $1,795/$1,800 area. Above that hurdle, $1,825/30 area
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The Bears and Bulls have been fighting over control in the gold market near the 1800 level for a while now, looking at the chart we notice that the market is trading in a triangle pattern that seems to be leaning into the Bullish side more than the Bearish.
We will be seeing a Breakout after the market cross above or below any of the pattern borders which probably will be in the near future.
Possible Scenarios for the market :
The market is trading at $1801.210 at the time this was posted, The week started Bullish for the gold market and we could be seeing an early move that will lead the market to the first weekly resistance line located at $1817.90. where this bullish trend will be tested and if the Bulls were able to keep control then this move will lead the market back to the resistance zone located near $1900.
On the downside, $1,780 (50-day SMA) aligns as the first support ahead of $1,770 . Sellers are likely to maintain control of the action as long as the above-mentioned resistance holds.
Technical Indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The MACD is above the 0 line indicating a Bullish market, With a positive crossover between the MACD line and the Signal line.
3) The RSI is at 60.14 showing Great strength in the market. no divergences were found.
Weekly Support & Resistance points :
support Resistance
1) 1763.36 1) 1817.90
2) 1734.25 2) 1843.33
3) 1708.82 3) 1872.44
Fundamental point of view :
On Thursday, the European Central Bank (ECB) will announce its Interest Rate Decision and release the Monetary Policy Decision Statement. In case the ECB event highlights the policy divergence with the Fed, the greenback could regather its strength and bring forth XAU/USD weakness.”
“The US Bureau of Economic Analysis will release its first estimate of third-quarter Gross Domestic Product (GDP) growth. On a yearly basis, the GDP is expected to expand by 3.2% following the 6.7%. A GDP reading near the market consensus could trigger another leg higher in US T-bond yields. On the other hand, a big miss could cause investors to price in a delay in the reduction of the Fed’s asset purchases and weigh heavily on the dollar.”
it's difficult to say that the outlook is bullish unless gold makes a decisive move above the $1,795/$1,800 area. Above that hurdle, $1,825/30 area
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.