Chart of the Week: Gold bears lurk at weekly trend line resistance
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- The price is testing weekly support and bearish commitments in the $1,800s.
- A break of $1,750 opens risk toward March highs near $1,644.
The price of gold has been supported by a dynamic weekly/daily trend line where bulls consolidated and finally made a break for the upside in the latter part of the week. The price moved into the $1,800s but has failed to take out the weekly trend line resistance so far. The following illustrates the possible trajectories for the week ahead:
Gold weekly chart
The weekly chart shows the price testing fresh dynamic resistance in what has been a 61.8% Fibonacci retracement of the prior weekly bearish impulse, which could equate to firm resistance. In doing so, the price would be expected to extend to the downside, in line with the dominant weekly trend and to test weekly horizontal support en-route to $1,650 and near to March 2020 highs:
Gold daily charts
From a daily perspective, the price is attempting a move higher, as Friday's price action shows, and the wick's high of the candle is a likely target for the sessions ahead. $1,835 guards territory to $1,880 as follows:
- The price is testing weekly support and bearish commitments in the $1,800s.
- A break of $1,750 opens risk toward March highs near $1,644.
The price of gold has been supported by a dynamic weekly/daily trend line where bulls consolidated and finally made a break for the upside in the latter part of the week. The price moved into the $1,800s but has failed to take out the weekly trend line resistance so far. The following illustrates the possible trajectories for the week ahead:
Gold weekly chart
The weekly chart shows the price testing fresh dynamic resistance in what has been a 61.8% Fibonacci retracement of the prior weekly bearish impulse, which could equate to firm resistance. In doing so, the price would be expected to extend to the downside, in line with the dominant weekly trend and to test weekly horizontal support en-route to $1,650 and near to March 2020 highs:
Gold daily charts
From a daily perspective, the price is attempting a move higher, as Friday's price action shows, and the wick's high of the candle is a likely target for the sessions ahead. $1,835 guards territory to $1,880 as follows:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.