Gold Weekly Price Analysis – March 31
In case the resistance level of $1,353 holds, the price will bounce back towards the support level of $1,292. Should the bullish momentum is strong enough to break up the resistance level of $1,353 and close above it, then, $1,389 will be the target.
Resistance levels: $1,353, $1,389, $1,435
Support levels: $1,292, $1,242, $1,181
XAUUSD Long-term trend: Bullish
XAUUSD is still on the bullish trend on the weekly chart. XAUUSD reaches the resistance level of $1,353 as predicted last week but the bullish momentum was not strong enough to break up the $1,353, the price then bounced back to $1,292 price level with the formation of a strong bearish candle. A bearish continuation pattern called “Bearish 3” formed at $1,292 support level. This pattern implies that there is a tendency for the Gold price to fall.
High pressure from the Bears is required to break down the $1,292 support level in order to expose the $1,242 support level. In case the Bulls’ momentum is strong enough to defend the $1,292 price level, then the Gold price will rise again towards $1,353 resistance level.
XAUUSD Medium-term Trend: Bearish
XAUUSD is bearish on the daily chart. The penetration of the dynamic support level of 21 periods EMA and 50 periods EMA downside by the Bears in the Gold market and also the broken downside of the support level of $1,292 is a good sign of bearish movement. The Head and shoulder pattern formed in the 4-hour chart is another confirmation to envisage bearish movement. In other words, falling in the price of Gold is highly envisaging.
The Stochastic Oscillator period 14 at 50 levels with the signal lines pointing down indicates sell signal and a further decrease in Gold price.
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