GOLD Strongly Bullish

analytics5e940d13dc377.jpg

Gold has opened with a gap up and it seems determined to jump above the near-term obstacles. It is trading at $1,686 and most likely will touch the $1,700 psychological level soon. The price is strongly bullish after Thursday’s amazing rally, the gold price has managed to make another high and to take out a short term dynamic resistance, signaling that it should increase far above $1,703 previous high.

Gold is expected to extend its rally as long as the USD drops versus the other major currencies. The dollar is into a corrective phase as the USDX continues to decrease after the FED decision to add more stimulus measures to fight the COVID-19 pandemic effects.

Technically, the yellow metal has registered a valid breakout above the inside sliding line (sl) of the ascending pitchfork, so a further increase is natural. The next resistance is seen at the $1,700 level, but I believe that the price could ignore this level, the R1 ($1,702) and the $1,703 former high and it could approach and reach the upper median line (uml) of the minor ascending pitchfork.

The gold price will maintain a bullish outlook as long as it is traded above the $1,600 psychological level. The RSI indicator has managed to breakout above a downtrend line and now it moves higher, signaling a strong buyers.

  • TRADING TIPS

Gold is strongly bullish and it should approach and reach fresh new highs in the upcoming days. The aggressive breakout above the sliding line (sl) has confirmed a potential increase towards the upper median line (uml) of the ascending pitchfork.

However, the next target is seen at $1,700 – $1,703 area and at the weekly R1 ($1,702) level, so only a valid breakout above this area will validate a significant increase. A valid breakout above the near-term obstacles will announce a potential increase even towards the $1,800 psychological level and towards the weekly R2 ($1,828) level.

If you want to buy Gold, you should consider placing a Stop Loss somewhere below the $1,600 level, you could hide it below the $1,565 former low, because we cannot exclude a potential rejection from the $1,700 – $1,703 area on the short term before it registers a valid breakout.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: GOLD Strongly Bullish

Won't your trader friends like this?
About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Related Posts

Leave a Reply

*