Gold Weekly Price Analysis – May 23
Should the bulls defend the support level of $1,680, then, the Gold price may continue to increase to $1,800 – $1,850. Failure of the bulls to defend the $1,680 price level, the price may decrease to $1,643 – $1,591
Resistance levels:, $1,736, $1,800, $1,850
Support levels: $1,680, $1,643, $1,591
XAUUSD Long-term Trend: Bullish
Gold is bullish in the long-term outlook. Gold broke out of the consolidation on 15 May. It was trading within the range of $1,736 resistance level and $1,680 support level. The price penetrated the resistance level of $1,736 and increases towards the resistance level of $1,800 but unable to reach the mark before it was interrupted by the bears. It is pulling back to retest the resistance level of $1,736.
The gold price is trading above the 21 periods EMA and 9 periods EMAs. The price is having direct contact with the two EMAs which indicates a reduction in the volatility. Should the bulls defend the support level of $1,680, then, the Gold price may continue to increase to $1,800 – $1,850. Failure of the bulls to defend the $1,680 price level, the price may decrease to $1,643 – $1,591.The Relative Strength Index period 14 is at 60 levels with the signal line pointing up to indicate a buy signal.
XAUUSD Medium-term Trend: Bearish
Gold is Bearish on the 4-hour chart. The Bulls lose momentum after it broke out of the horizontal channel. The bulls pushed up the price to penetrate the resistance level of $1,736. The bears opposed the breakout with the formation of strong bearish candles, the price reduces to retest the broken level of $1,736.
Gold is trading below 9 periods EMA and the 21 periods EMA and the two EMAs are interlocked to each other. The Relative Strength Index period 14 is above 50 levels with the signal lines pointing downside to indicate a sell signal which may be a pullback.
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