XAUUSD: Projection of the current parabolic move. Bullish RSI.

Last week we made a long term analysis of Gold by comparing the current bullish break out to the early June, 2019 pattern, setting an upside target of 1,640 (see below):



Today we are looking at this Parabolic Rise on the more short term 4H chart. The most interesting fact is the RSI which is on a Channel Up. This parabola on the 4H chart has now neutralized the previously overbought levels (RSI = 66.274, MACD = 14.030, ADX = 46.204, Highs/Lows = 2.5286) with the drop and test (so far successful) on the 1,557 former 1W Resistance, but 1D remains overbought heavily (RSI = 85.761, MACD = 20.400) and that is why we cannot dismiss a lower pullback to gather up renewed buy interest.

For that reason as explained on the previous analysis, besides 1,557 we consider 1,536 as a potential long term Support level. That will make a solid sideways consolidation still within the Parabola (green curver) that may accumulate buyers and finally break towards 1,640. In June 2019 the 4H MA50 held, didn't break and supported the uptrend. If it does this time also, then the break out to 1,640 may be even stronger.

We remain strongly bullish on Gold on the long term since our November fractal analysis as seen below:





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