Gold Weekly Price Analysis – May 21
Price may reverse at the previous low of $1,805 provided it holds and the bullish momentum may commence which may target $1,833, $1,868 and $1,888 resistance levels. In case the support level of $1,805 does not hold the support levels at $1,761, and $1,723 may be tested.
XAUUSD Market
Key levels:
Resistance levels: $1,833, $1,868, $1,888
Support levels: $1,805, $1,761, $1,723
XAUUSD Long-term Trend: Bearish
Gold is bearish on the long-term outlook. The previous low 0f $1,805 was tested last week after sellers increased their pressure. The bearish pressure pushed the price to break down the support level at $1,868 and $1,833 levels. The force of the bears increased and the price experienced a fake breakout on May 16. It seems the bulls is defending the support level of $1,805 and the bulls’ pressure is increasing gradually.
Gold has penetrated the 9 periods EMA while the 21 periods EMA is above the price which indicate that bulls are preparing to dominate the market. The two EMAs are descending towards the south and the price is trading between the two EMAs. Price may reverse at the previous low of $1,805 provided it holds and the bullish momentum may commence which may target $1,833, $1,868 and $1,888 resistance levels. In case the support level of $1,805 does not hold the support levels at $1,761, and $1,723 may be tested.
XAUUSD Medium-term Trend: Bullish
Gold is bullish in the 4-hour chart. Bears were not able to push down price below $1,805 level before bulls took over the market last week. The bulls defends the just mentioned level and this what makes the Gold price increasing towards the $1,868 price level. The bullish trend is commencing in the Gold market.
Gold is trading above the two EMAs. The 9 periods EMA has crossed the 21 periods EMA upside. The Relative Strength Index period 14 is at 60 levels with the signal line pointing upside to indicate buy signal.
