Gold Weekly Price Analysis – May 11
In case the Bulls gather enough momentum to break up the drawn trend line and the supply level of $1,292, then, Gold may rally towards $1,353 level. Should the Bears defend the $1,292 level, the bearish trend may continue.
Resistance levels: $1,292, $1,353, $1,389,
Support levels: $1,242, $1,181, $1,130
XAUUSD Long-term trend: Bearish
XAUUSD is bearish on the long-term outlook. The Bulls dominated the Gold Market last week, though, on the weekly chart, Gold still maintains its bearish position. For three week now it seems the metal has not made any significant movement from the position it was since April 15. It was just making a kind of up and down movement on the same level. The Bulls and the Bears were interchanging their movement weekly at the same level.
Gold price remains trading in between the 21 period EMA and 50 periods EMA; the price has been on this level for more than two weeks. Nevertheless, the Moving Average Convergence Divergence period 12 with its histogram is below zero levels and the signal lines bending down to indicate sell signal. In case the Bulls gather enough momentum to break up the drawn trend line and the supply level of $1,292, then, Gold may rally towards $1,353 level. Should the Bears defend the $1,292 level, the bearish trend may continue.
XAUUSD Medium-term Trend: Ranging
XAUUSD is consolidating on the daily chart. On April 12, the $1,292 level was broken down by the Bears and the metal was descending toward $1,242 level. Along the way, the Bears lost their momentum and the Bulls have not got enough pressure, the metal started consolidation.
Gold price is in between the two EMAs as a sign of a sideways movement. However, the MACD period 12 is below zero levels and the signal lines bending up which connotes buy signal.
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