GOLD outlook for the coming week.
Seasonality suggests that Gold is positive until 14th May and a decline is expected from 14th - 27th May.
DXY is reaching for lower levels and is expected to close the gap at 90.100
Hedge Funds and Money Managers have increased their net long position on Gold.
With all this, we can conclude that a further push-up can be expected on Gold this week.
On the D1 chart, we can see that Gold has broken out of a consolidation zone where the price was held for 14 days in the range of 1755-1797.
We now believe that Gold will target: 1851.00 ,1875.00 and possibly 1900 level on the upside.
1851-1855 is 0.618% fib retracement level confluence with the descending trend line. This could be a point of reversal.
It is possible that we will only get shallow retracement before this target objective is met or the price could continue going up from the market open.
The ideal scenario would be we get a retracement back into 1816-1798 zone to be able to take long positions targeting 1851.00 ,1875.00
On the H4 chart, you will notice that the price is moving up in an ascending channel. We have marked up target levels and also optimal levels for long positions if the opportunity arises.
We will be looking to take long positions if we get a retrenchment first, if the price reaches 1851 zone and finds resistance, we will then wait for confirmation and look for shorts.
If the price breaks above 1875 we will then wait for a retest of the breakout and go long.
Please note that a drop and close below the consolidation zone (1755-1797) invalidates the bullish outlook and we could be seeing the low of 1676.00 as the target on the downside.
If you find the analysis helpful please like and share.
We wish you a prosperous week ahead.
DXY is reaching for lower levels and is expected to close the gap at 90.100
Hedge Funds and Money Managers have increased their net long position on Gold.
With all this, we can conclude that a further push-up can be expected on Gold this week.
On the D1 chart, we can see that Gold has broken out of a consolidation zone where the price was held for 14 days in the range of 1755-1797.
We now believe that Gold will target: 1851.00 ,1875.00 and possibly 1900 level on the upside.
1851-1855 is 0.618% fib retracement level confluence with the descending trend line. This could be a point of reversal.
It is possible that we will only get shallow retracement before this target objective is met or the price could continue going up from the market open.
The ideal scenario would be we get a retracement back into 1816-1798 zone to be able to take long positions targeting 1851.00 ,1875.00
On the H4 chart, you will notice that the price is moving up in an ascending channel. We have marked up target levels and also optimal levels for long positions if the opportunity arises.
We will be looking to take long positions if we get a retrenchment first, if the price reaches 1851 zone and finds resistance, we will then wait for confirmation and look for shorts.
If the price breaks above 1875 we will then wait for a retest of the breakout and go long.
Please note that a drop and close below the consolidation zone (1755-1797) invalidates the bullish outlook and we could be seeing the low of 1676.00 as the target on the downside.
If you find the analysis helpful please like and share.
We wish you a prosperous week ahead.
