Gold Weekly Price Analysis – September 12
The yellow metal may be exposed to the support level at $1,901 and $1,871 provided the support level at $1,935 does not hold. The breakout at the upper trend line of the pennant may lead to the breakup of $1,984 which may extend to $2,020 and $2,074 levels.
Resistance levels: $1,984, $2,020, $2,074
Support levels: $1,935, $1,901, $1,871
XAUUSD Long-term Trend: Ranging
The falling of the precious metal from the August high at the resistance level of $2,074 was supported at the price level of $1,901. The just mentioned level has been tested by the price three times but unable to break it down. The price action on the daily chart has formed a chart pattern called “Falling pennant”. The price is ranging within the chart pattern. Throughout last week, the Gold price was consolidating on the support level at $1,935.
Breakout is imminent in the days ahead. The two EMAs are interlocked and the price is consolidating on the 9 periods EMA and 21 periods EMA as a sign of consolidation. The support level at $1,935 still holds the metal, likewise the resistance level at $1,984. The market closed yesterday with the daily bearish candle at $1.935 level. The yellow metal may be exposed to the support level at $1,901 and $1,871 provided the support level at $1,935 does not hold. The breakout at the upper trend line of the pennant may lead to the breakup of $1,984 which may extend to $2,020 and $2,074 levels.
XAUUSD Medium-term Trend: Ranging
Gold is on the ranging movement. The falling pennant pattern is formed on the 4-hour chart with the price ranging within it. The momentum of the bulls and that of the bears are becoming weaker and the intensity of the consolidation increases. Not until there is a breakout at $1,984 or $1,935 level, the consolidation continues.
The precious metal is trading over and around 9 periods EMA and 21 periods EMA, the relative strength index period 14 is bending down to indicates selling. When the market opens, the trader can place Sell Stop at $1,895.71, Profit at $1,822.46, and Stop Loss at $1,945.92.