Gold Weekly Price Analysis – February 29
Increase in the Bears’ pressure will break the support level of $1,550 and expose the $1,478 price level. In case the support level of $1,550 holds the price may resume its bullish trend.
Resistance levels: $1,591, $1,643, $1,690
Support levels: $1,550, $1,478, $1,437
XAUUSD Long-term Trend: Bearish
Gold is bearish on the long-term outlook. The Bullish momentum experienced in the Gold market few weeks ago placed the pair at the Resistance level of $1,690. The bullish momentum was opposed by the Bears’ pressure and the price could not break up the level. This led to formation of daily candle with long tail. The price declined to found support at the dynamic support level of 50 periods EMA.
The price has penetrated the 21 periods EMA testing the 50 periods EMA; this indicates that the Bears are taking over the Gold market. Increase in the Bears’ pressure will break the support level of $1,550 and expose the $1,478 price level. In case the support level of $1,550 holds the price may resume its bullish trend. However, the Relative Strength Index period 14 is at 50 levels with the signal line pointing down to indicate a sell signal.
XAUUSD Medium-term Trend: Bearish
Gold is bearish on the 4-hour chart. The bullish trend was interrupted by the Bears on 24 February at the resistance level of $1,690. The price dropped to the $1,643 price level and started consolidation. On 28 February, the Bears’ gained more momentum and break down the $1,643 and $1,591 price levels. Gold market closed below the resistance level of $1,591 which implies that bearish movement may continue.
Gold is trading below the 21 periods EMA and 50 periods EMA which implies a strong bearish movement in the Gold market. The Relative Strength Index period 14 is at 40 levels with the signal lines pointing down to indicate a sell signal.
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