Gold Weekly Price Analysis – December 07
Should the Bears maintain or increase their momentum there will be a further decrease in Gold price towards the support level of $1,435. In case the support level of $1,435 does not hold the price may reach $1,389 level.
XAUUSD Market
Key levels:
Resistance levels: $1,478, $1,539, $1,601
Support levels: $1,435, $1,389, $1,353
XAUUSD Long-term Trend: Bearish
Gold is bearish on the long-term outlook. The Bulls tried to push up yellow metal so that it breakout of the consolidation mode but the confluence at the resistance level of $1478 prevented the breakout. A short daily pin bar candle formed on December 02 triggered the bulls’ pressure and this is clearly seen on the daily chart with the formation of strong bullish candle that pushes the price to test the resistance level of $1,478. The price consolidates for two days after which the Bears push down the price towards the support level of $1,435 on 06 December.
The price was formerly trading in between the two EMA, but currently trading below the 21 periods EMA and 50 periods EMA as a sign of increase in the Bears’ momentum. Should the Bears maintain or increase their momentum there will be a further decrease in Gold price towards the support level of $1,435. In case the support level of $1,435 does not hold the price may reach $1,389 level. The stochastic oscillator period 14 is above 60 levels and the signal lines pointing down which indicates further decrease in price.
XAUUSD Medium-term Trend: Bearish
On the 4-hour chart Gold is bearish. At the early stage of last week, Gold price was consolidating at the resistance level of $1,478. On December 06, the Bears prevailed over the Bulls and the price decline targeting the support level of $1,435.
The price is currently trading below the two EMAs which indicate that the Bears are dominating the Gold market. The Stochastic Oscillator period 14 is at 20 levels with the signal lines pointing down to indicate a sell signal.
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