Gold Weekly Price Analysis – January 16
An increase in the bears’ momentum may decrease the price to the $1,789 level, in case it is penetrated, $1,966 and $1,074 may be tested. Inability to break down the $1,789 level may lead to the continuation of the bullish trend in which $1,900, $1,966 and $1,074 may be the bulls’ target.
XAUUSD Market
Key levels:
Resistance levels: $1,900, $1,959, $2,074
Support levels: $1,818, $1,789, $1,741
XAUUSD Long-term Trend: Bearish
On the long-term outlook, Gold is bearish. The Bulls pushes the price to reach the resistance level of $1,959 on January 06. The mentioned level holds and the bulls’ momentum could not withstand the resistance level. The bearish engulfing candle emerges to indicate that the bears are ready for action. The price declines under the pressure of the bears. The weekly market closed with the price directly testing the support level of $1,818.
The two EMAs have been penetrated downside by the bears and the price is trading below the 9 periods EMA and 21 periods EMA as an indication of bearish momentum. In case the Gold metal breaks down the $1,818 price level, $1,789 and $1,741 may be the next support level target. Should the support level of $1,818 holds, the price may increase towards the $1,900, $1,959, and $2,074 levels. The relative strength index period 14 is at 30 levels pointing down to indicate sell signal.
XAUUSD Medium-term Trend: Bearish
Gold is bearish in the 4-hour chart. The bears have been in control of the Gold market for a while. The bearish momentum pushes down the price to the support level of $1,818 last week. The bears lose their momentum and the bulls’ pressure is equally weak and the price started consolidating within the $1,865 and the $1,818 support level.
The 9 periods EMA remains below 21 periods EMA and the price is trading below the two EMAs which indicates that the bears are holding tight to the Gold market. The Relative Strength Index period 14 is at 20 levels with the signal line pointing downside to indicate sell signal.
