Technical analysis update: XAUUSD (25th October 2021)
XAUUSD continues to climb higher. At the same time, the odds for validation of inverted head and shoulders pattern increasingly grow. Pattern will get validated once neckline (around 1835 USD) is penetrated to upside. This neckline currently acts as important resistance level. We expect occurence of breakout above this resistance to be accompanied by resumption of bullish trend which will take gold to new all time high. We continue to be bullish on gold and we would like to set short-term price target to 1850 USD. Our medium-term price target remains 1875 USD.
Technical analysis
MACD performed bullish crossover which strongly bolsters bullish case for gold. In addition to that RSI and Stochastic remain bullish. We expect eventual RSI crossover into overbought territory which will be accompanied by validation of inverted head and shoulders pattern (and subsequent resumption of uptrend). ADX continues to contain low value which suggests that trend is very weak.
Support and resistance
Short-term resistance appears near 1835 USD which coincides with neckline of forming inverted head and shoulders pattern. Another important resistance sits at 1916 USD. Short-term support sits at 1800 USD, while another important support level sits at 1750 USD. Major support sits at low of 1676 USD while major resistance sits at all time high of 2075 USD.
Our previous thought from 14th October 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.
Technical analysis
MACD performed bullish crossover which strongly bolsters bullish case for gold. In addition to that RSI and Stochastic remain bullish. We expect eventual RSI crossover into overbought territory which will be accompanied by validation of inverted head and shoulders pattern (and subsequent resumption of uptrend). ADX continues to contain low value which suggests that trend is very weak.
Support and resistance
Short-term resistance appears near 1835 USD which coincides with neckline of forming inverted head and shoulders pattern. Another important resistance sits at 1916 USD. Short-term support sits at 1800 USD, while another important support level sits at 1750 USD. Major support sits at low of 1676 USD while major resistance sits at all time high of 2075 USD.
Our previous thought from 14th October 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.
Trade closed: target reached
