Gold Weekly Price Analysis – January 04
There is a high probability that the price will increase and test the resistance level of $1,591 as long as the Bulls maintain their momentum. Nevertheless, price retracement or pullback cannot be overruled.
XAUUSD Market
Key levels:
Resistance levels: $1,591, $1,643, $1,690
Support levels: $1,539, $1,510, $1,478
XAUUSD Long-term Trend: Bullish
Gold is bullish on the long-term outlook. On 27 December, the yellow metal closed with a daily Doji candle at the former resistance level of $1,510 which indicates an indecisive market situation. The Bulls eventually prevailed and the price increased towards the resistance level of $1,539. On 03 January, a strong bullish candle emerged and broke up the former resistance level of $1,539 and it moved up towards the resistance level of $1,591. The market closed last week above the just mentioned level.
The 21 periods EMA has crossed above 50 periods EMA and the price is trading above the two EMAs at a distance which indicates that the Bulls were fully in charge of the Gold market. There is a high probability that the price will increase and test the resistance level of $1,591 as long as the Bulls maintain their momentum. Nevertheless, price retracement or pullback cannot be overruled. Meanwhile, the Relative Strength Index period 14 is at 80 levels and the signal lines pointing up which indicates a strong buy signal.
XAUUSD Medium-term Trend: Bullish
Gold is bullish on the 4-hour chart. After the breakout that took place two weeks ago at the former resistance level of $1,478 on December 20, the Bulls consistently maintain their pressure and the price steadily increased. It broke up the former resistance level of $1,539 exposes the resistance level of $1,591.
The price is trading above the 21 periods EMA and 50 periods EMA which connotes a strong bullish trend. The Relative Strength Index period 14 is at 80 levels with the signal lines pointing up to indicate a strong buy signal.
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