empty
 
 
06.04.2020 09:06 AM
GOLD Needs Bullish Spark!

Gold is still pressuring a strong dynamic resistance, only a valid breakout will confirm a further increase. It is traded at $1,622 and it maintains a bullish outlook after the failure to stabilize below the $1,600 psychological level.

The poor US data could send the yellow metal towards fresh new highs in the upcoming period because the USD could retreat a little after the last rally. The coronavirus has caused serious economic damages in the US, Europe, China, etc, that's why Gold remains an attractive buy in this risk aversion situation. I've said in my previous analysis that the gold price could jump way above the $1,700 level because the COVID-19 pandemic is far from being finished.

This image is no longer relevant

Gold will resume the upside movement if it will take out the resistance represented by the upper median line (UML) of the orange descending pitchfork. A valid breakout above the UML and stabilization above the median line (ml) of the dark blue ascending pitchfork will signal a bullish momentum towards the $1,700 - $1,703 area and towards the monthly R1 ($1,702).

You can see that the price has come back to retest the monthly Pivot Point ($1,576), it has registered only a false breakdown below this downside obstacle, that's why a bullish movement towards the R1 (1,702) is expected, fundamentally, is expected to increase as well.

  • TRADING TIPS

Gold will increase further after a valid breakout above the upper median line (UML) of the orange descending pitchfork and if it continues to stay above the median line (ml) of the minor ascending pitchfork. The next major target and obstacle is seen at the $1,703 previous high, a valid breakout above this level and above the R1 (1,702) will validate a larger increase in the upcoming weeks, even towards the upper median line (uml) of the blue ascending pitchfork.

A further increase could be invalidated only by another drop below the Pivot Point ($1,576) and below the $1,555 static support.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback