Gold Crawling Towards Resistance At 1526.50
By Fan Yang on Gold (XAU/USD)
Short-Term to Medium Term- Gold has been tentatively rallying from the 1470 support area.It is now nearing a resistance pivot at 1526.50.
- The RSI swinging back and forth from above 70 and below 30 reflects a ranging market.
- In a ranging market, when price and momentum is overstretched, we might have a reversion towards the “mean”. Here we see the 200SMA as a pivot near 1500, which is also a psychological barrier. If the market can hold above this level, the market might be building strength to break above this 1526-1532 resistance zone and rally towards the record high near 1575. (1532 is 61.8% retracement of the decline from 1575 to 1462.25.)
- A break below 50 suggests bearish bias in the very short-term, still in the context of a ranging market, with support near 1470. A break below that opens up the next important pivot at 1445 in a support cluster area.
- The daily chart shows this 1445 pivot in the middle of a swing projection towards 1420-1425 area, which would test a rising channel, so this can be the bearish target if 1445 does not hold.
- It should be noted that the RSI shows maintenance of the medium term to long term bullish momentum.
- The RSI swinging back and forth from above 70 and below 30 reflects a ranging market.
- In a ranging market, when price and momentum is overstretched, we might have a reversion towards the “mean”. Here we see the 200SMA as a pivot near 1500, which is also a psychological barrier. If the market can hold above this level, the market might be building strength to break above this 1526-1532 resistance zone and rally towards the record high near 1575. (1532 is 61.8% retracement of the decline from 1575 to 1462.25.)
- A break below 50 suggests bearish bias in the very short-term, still in the context of a ranging market, with support near 1470. A break below that opens up the next important pivot at 1445 in a support cluster area.
- The daily chart shows this 1445 pivot in the middle of a swing projection towards 1420-1425 area, which would test a rising channel, so this can be the bearish target if 1445 does not hold.
- It should be noted that the RSI shows maintenance of the medium term to long term bullish momentum.
Is risk sentiment still in demand of gold?
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