Gold Weekly Price Analysis – May 18
In case the Bears were able to gather enough momentum to break down the lower trend line of the descending triangle, then, the demand level of $1,242 may be reached.
Resistance levels: $1,292, $1,353, $1,389,
Support levels: $1,242, $1,181, $1,130
XAUUSD Long-term trend: Bearish
XAUUSD remains bearish on the long-term outlook. Early last week Gold metal was bullish on the weekly chart. The bullish momentum pushed the metal to break up the resistance level of $1,292. After some time the Bears did not allow the continuation of the gold price increase. The Bears prevailed over the Bulls and the price was pushed down to the former low; that is the level the gold price has been ranging for more than three weeks. The price has formed a descending triangle pattern on the weekly chart.
The Gold price returned to the trading area it was since three weeks ago; that is trading in between the 21 period EMA and 50 periods EMA. However, the Stochastic Oscillator period 14 is at 25 levels with the signal lines parallel to the level without significant direction which indicates that consolidation is ongoing in the Gold market on the weekly chart. In case the Bears were able to gather enough momentum to break down the lower trend line of the descending triangle, then, the demand level of $1,242 may be reached.
XAUUSD Medium-term Trend: Bearish
XAUUSD is Bearish on the daily chart. The price movement on the daily chart has formed a descending triangle pattern. The market closed yesterday with a strong bearish candle in the daily chart; this connotes that the Bears may dominate the market next week.
Gold price penetrated the two EMAs and the price is a bit below the 21 periods EMA and 50 periods EMA as a bearish sign. Meanwhile, the stochastic Oscillator period 14 is at 75 levels and the signal lines bending down which indicates sell signal.
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