Gold Weekly Price Analysis – April 20
There is a possibility that Gold price will experience a pullback before the continuation of bearish movement. Should the Bears maintain or increase their pressure, the Gold price will decline further towards $1,242 and may touch the mark.
Resistance levels: $1,292, $1,353, $1,389,
Support levels: $1,242, $1,181, $1,130
XAUUSD Long-term trend: Bearish
On the weekly chart, XAUUSD is bearish. The resistance level of $1,292 holds last week and there was an increase in the Bears’ pressure and that led to the decrease in the Gold’s price. The Gold price could not reach $1,242 but already exposed to it. The Bears are still in control of the Gold market, the tendency of further declination is high. The weekly bearish candle has penetrated the 21 period EMA trying to penetrate 50 periods EMA.
Gold price is trading in between the 21 period EMA and 50 periods EMA. The Stochastic Oscillator period 14 is close to 40 levels with the signal lines bending down to indicate sell signal and a further declination in Gold price. Should the Bears maintain or increase their pressure, the Gold price will decline further towards $1,242 and may touch the mark.
XAUUSD Medium-term Trend: Bearish
XAUUSD is still bearish on the daily chart. More bearish candles emerged last week on the daily chart after the bearish engulfing candle formed on April 11 and the following daily candle that formed on April 12 was shooting star which penetrated the $1,292 level downside. This makes the Bears take full control of the Gold market. There is a possibility that Gold price will experience a pullback before the continuation of bearish movement.
The Stochastic Oscillator period 14 is below 20 levels (oversold level) trying to bend up which connotes buy signal which may be for a short period of time before continuation of a bearish trend.
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