20.07.2020 10:44 AM
GOLD Range Breakout Expected!

Gold price is located in the buyer's territory, so it could jump higher anytime again as the USD's drop could attract more bulls on the yellow metal. The price is traded within a minor range, a valid upside breakout could bring another long opportunity soon.

The current sideways movement could represent a strong consolidation, accumulation, the price tries to capture more bullish energy before it will resume the uptrend, swing higher.

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The gold price was rejected once again by the median line (ML) of the major black ascending pitchfork and by the $1,800 level, so the outlook is bullish. Another higher high will confirm further growth in the short term towards new highs.

I believe that only a valid breakdown below the median line (ML) and below the $1,800 psychological level will invalidate a further upside movement.

  • XAUUSD Trading Tips

The gold price is traded within a minor range, a valid breakout from this pattern will bring a trading opportunity. An upside breakout, a valid breakout above the $1,818 and above the R1 ($1,821) will suggest buying again, the first target is seen at the 50% Fibonacci line, while the next major upside target is seen at the upper median line (UML) and at the R2 ($1,861) level.

The price is expected to make an upside breakout after the failure to approach and reach the median line (ml) of the minor descending pitchfork.

A short opportunity will appear if the yellow metal registers a valid breakdown below the ML and below the $1,800 - $1,795 area.

Ralph Shedler,
Analytical expert of InstaForex
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