Gold Weekly Price Analysis – September 19
Consolidation will continue as long as the support level at $1,935 and the resistance level at $1,984 hold the metal. Gold price may be reduced to the support level at $1,901 and $1,871 provided the support level at $1,935 does not hold.
Resistance levels: $1,984, $2,020, $2,074
Support levels: $1,935, $1,901, $1,871
XAUUSD Long-term Trend: Ranging
The ranging movement continues in the Gold market. The precious metal has been stagnant for many weeks after the price spark that occurred in August. Despite the volatility that is noticed in other markets, Gold retains its trading within the resistance level of $1,984 and the support level of $1,935. The trading outside the pennant pattern formed in the Gold market may require a catalyst. Breakout is imminent.
The 9 periods EMA is interlocked to 21 periods EMA as a sign of consolidation and the price is trading around and over the two EMAs. Consolidation will continue as long as the support level at $1,935 and the resistance level at $1,984 hold the metal. Gold price may be reduced to the support level at $1,901 and $1,871 provided the support level at $1,935 does not hold. The increase in Gold price to the resistance levels of $2,020 and $2,074 depends on the increase in the bulls’ momentum and the breakout t at the upper trend line to the $1,984 level.
XAUUSD Medium-term Trend: Ranging
The ranging movement in the Gold market is becoming narrower in the 4-hour chart. The buyers’ pressure is reducing and the sellers’ momentum is getting weak. On September 17, the bears tried to break down the support level at $1.935 but fail. The resistance levels at $1,976 hold the price. Throughout last week, the price coiled like a spring trying to run out of the pennant pattern formed suggesting that a breakout may be due.
Gold 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 $1,927.71, Profit at $1,881.37, and Stop Loss at $1,977.81.