Gold Weekly Price Analysis – August 22
The breakup of the two dynamic resistance levels may push up the price to $1,984 which may extend to $2,020 – $2,074. The Gold price may encounter support level at $1,935, $1,901, and $1,871 provided the price could not break up the dynamic resistance level.
Resistance levels: $1,984, $2,020, $2,074
Support levels: $1,935, $1,901, $1,871
XAUUSD Long-term Trend: Bearish
Gold is bearish in the long – term outlook. The metal closed last week at the resistance level of $1,984. The following trading day, it increases to $2,020 price level with the aim of testing the previous high but the bears defended the resistance level at $2,020 with the formation of daily bearish candle that breaks down $1,935 price level. The weekly market closed at the same level.
There is a possibility that yellow metal may increase in price to $2,020 before it falls as the price closed at the support level $1,935 with a hammer candle pattern. However, the price is trading below 9 periods EMA and 21 periods EMA and the Relative Strength Indicator period 14 is parallel to 50 levels showing no direction. The breakup of the two dynamic resistance levels may push up the price to $1,984 which may extend to $2,020 – $2,074. The Gold price may encounter support level at $1,935, $1,901, and $1,871 provided the price could not break up the dynamic resistance level.
XAUUSD Medium-term Trend: bearish
Gold found support at $1,871 on August 12, the level holds and the price reversed. The increase in price continues to $2,020 price level after broken to the upside the price levels $1,935 and $1,984. The bears interrupted the bullish movement at $2,020 level and the price decline to $1,935 support level where it is currently consolidating.
The price is consolidating below the two EMAs and the relative strength index period 14 is at 40 levels and the signal line pointing up indicates an increase in price. Place Buy Stop at $1,965.47, Take Profit at $2.010.78, Stop Loss at $1,907.99.