Gold Weekly Price Analysis – September 14
Further increase in the Bears’ momentum may lead to the penetration of support level of $1,478 downside and the price will target $1,435 price level. Should the Bulls defend the support level of $1,478, there may be a consolidation of the price around that mark.
Resistance levels: $1,539, $1,601, $1,662
Support levels: $1,478, $1,435, $1,389
XAUUSD Long-term Trend: Bullish
Gold is bullish on the long-term outlook. Three weeks ago, the Gold price started falling after the bullish trend pushed up the price to reach the resistance level of $1,539. An inverted pin bar was produced at the level and the price started declining. Last week, the Bulls initially dominated the Gold market, the price increased, later in the week, the Bears took over. Strong bearish candles were produced; the price declined towards the $1,478, not yet reaches the mark. The market closed with the bearish candle.
The 21 periods EMA remains above the 50 periods EMA and the Gold continues its trading above the two EMAs which indicates a bullish trend. Further increase in the Bears’ momentum may lead to the penetration of support level of $1,478 downside and the price will target $1,435 price level. Should the Bulls defend the support level of $1,478, there may be a consolidation of the price around that mark. The Stochastic Oscillator period 14 is above 80 levels and the signal lines bending down which indicates a sell signal and further reduction in Gold price.
XAUUSD Medium-term Trend: Bearish
XAUUSD is bearish on the daily chart. A bearish candle pattern called “Morning star” was formed at the resistance level of $1,539 on September 04. The price began to drop towards the support level of $1,478. The metal is currently consolidating at the just mentioned level.
The metal has penetrated the 21 periods EMA downside focusing on 50 periods EMA; that is the price is trading in between the two EMAs. However, the Stochastic Oscillator period 14 is below 20 levels with the signal lines bending up to indicate a price reversal signal.
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