Gold Weekly Price Analysis – October 17
A further price increase is expected as the price action formed an ascending channel in the daily chart. An increase in the Bulls’ momentum may break up the resistance level of $1,935, which may increase to $1,984 and $2,004 resistance levels
Resistance levels: $1,935, $1,984, $2,004
Support levels: $1,901, $1,850, $1,778
XAUUSD Long-term Trend: Bullish
The expectation of retail traders is yet to materialize on shinning metal; it was a belief that Gold price will soar beyond the present level when it bottomed twice at the support level of $1,850 on September 28. The price increases steadily to break up the $1,901 price level and test the resistance level of $1,935. Last week, the market closed at $1,935 and could not break up the level. The price then pulls back to retest the $1901 price level; that is a 1% loss before the weekly market closed yesterday.
The two moving averages were parallel to each other to indicate low volatility in the Gold market. However, the price is ranging on the two EMAs. A further price increase is expected as the price action formed an ascending channel in the daily chart. An increase in the Bulls’ momentum may break up the resistance level of $1,935, which may increase to $1,984 and $2,004 resistance levels. If the daily candle closes below the lower trend line of the channel, the price may reduce to $1,850 and $1,778 demand level.
XAUUSD Medium-term Trend: Bullish
Gold is bullish in the 4-hour chart. The precious metal was supported by bullish pressure two weeks ago. The price action has formed an ascending channel towards the resistance level of $1,935 in which the level was tested. The price dropped at the mentioned level to support the level of $1,901; that means it gives away its gain.
Gold is consolidating at the $1,901 price level before the end of the market yesterday; it was trading around the 9 periods EMA and 21 periods EMA. Nevertheless, the relative strength index period 14 is pointing down with its signal line at 40 levels to indicate a sell signal. Buy Stop can be placed at $1,916.58, Stop Loss at $1,888.94, and Take Profit at $1,945.35.