empty
 
 
08.04.2020 10:10 AM
GOLD On The Run

Gold is shining again after yesterday's minor drop, it is trading at $1,653 level and is expected to approach the $1,700 - $1,703 area soon. The bullish momentum was paused by another dynamic resistance, but I really believe that the price will take out this obstacle and it will jump way higher.

In my opinion, Gold has confirmed a potential further increase, even if it is still trading below some strong resistance levels. Fundamentally, the price could reach fresh new highs as the global risk grows, coronavirus (COVID-19) will continue to make victims among people and economies.

This image is no longer relevant

GOLD has found a temporary resistance at the outside sliding line (SL) of the orange descending pitchfork, but the outlook is bullish as long it is traded above the median line (ml) of the dark blue ascending pitchfork.

We cannot exclude a minor drop on the short term, the price could come back down to test and retest the broken upper median line (UML), the median line (ml) and the $1,600 level before it will pass above the $1,703 former high.

  • TRADING TIPS

The aggressive breakout through the upper median line (UML) has confirmed that the buyers are very strong and that most likely we'll have another higher high soon. Personally, I believe that an increase above $1,673 yesterday's high will signal a valid breakout above the $1,700 - $1,703 area.

If the gold price stabilizes above the median line (ml) of the ascending pitchfork, the next major upside target is seen at the upper median line (uml) of this pitchfork. A minor drop towards the $1,600 will give us a great chance to go long on Gold again, the bias will be bullish as long as it stays above this psychological level.

We may have a good buying opportunity also after a valid breakout above the $1,700 - $1,703 resistance area. A further increase could be invalidated only by a drop below the PP ($1,576) and below the $1,555 level.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback