Technical analysis update: Gold (5th January 2022)
On 3rd January 2022 gold dropped to 1798.380 USD which coincides with price retracement towards its 20-day SMA. Price halted its decline slightly above this technical indicator and then reversed back up. In our view this is very bullish and odds for a bullish breakout above the neutral zone (between 1750 USD and 1835 USD) are increasingly growing. We still remain bullish on gold and await resumption of a bullish trend once breakout above 1835 USD occurs. We would like to set a short-term price for gold to 1835 USD and medium-term price target to 1850 USD.
Technical analysis - daily time frame
RSI continues to develop a bullish structure. MACD is bullish too; indeed, it performed a bullish crossover on 27th December 2021. This strongly bolsters the bullish case for gold. Stochastic oscillates within the upper area which is bullish as well. DM+ and DM- show mixed conditions. ADX contains low value which suggests that the prevailing trend remains neutral.
Illustration 1.01
Picture above shows the daily chart of XAUUSD. It also shows that volume has been increasing since 27th December 2021. In our opinion, this signals that a bullish breakout is impending.
Technical analysis - weekly time frame
RSI is neutral. Stochastic is bullish and MACD is also bullish. Indeed, MACD performed bullish crossover above 0 points, similarly like on a daily time frame. DM+ and DM- are both declining and show mixed conditions. ADX has low value which further supports that prevailing trend is neutral.
Illustration 1.02
Chart above shows the weekly graph of MACD on XAUUSD. Recent crossover is clearly visible.
Support and resistance
Short-term resistance lies at 1835 USD and it acts as the upper bound of the neutral zone. Short-term support lies at 1750 USD and it acts as the lower bound of the neutral zone. Another important support lies at 1721 USD while the major support level lies at 1676 USD. Other important resistance levels are at 1916 USD, 1959 USD, and 1965 USD. Major resistance level lies at an all time high of 2075 USD.
Our most recent idea that shows possible setups on gold:
Bullish area is indicated above 1835 USD while bearish area is indicated below 1750 USD.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Technical analysis - daily time frame
RSI continues to develop a bullish structure. MACD is bullish too; indeed, it performed a bullish crossover on 27th December 2021. This strongly bolsters the bullish case for gold. Stochastic oscillates within the upper area which is bullish as well. DM+ and DM- show mixed conditions. ADX contains low value which suggests that the prevailing trend remains neutral.
Illustration 1.01
Technical analysis - weekly time frame
RSI is neutral. Stochastic is bullish and MACD is also bullish. Indeed, MACD performed bullish crossover above 0 points, similarly like on a daily time frame. DM+ and DM- are both declining and show mixed conditions. ADX has low value which further supports that prevailing trend is neutral.
Illustration 1.02
Support and resistance
Short-term resistance lies at 1835 USD and it acts as the upper bound of the neutral zone. Short-term support lies at 1750 USD and it acts as the lower bound of the neutral zone. Another important support lies at 1721 USD while the major support level lies at 1676 USD. Other important resistance levels are at 1916 USD, 1959 USD, and 1965 USD. Major resistance level lies at an all time high of 2075 USD.
Our most recent idea that shows possible setups on gold:
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
Trade active:
Hawkish FED minutes stop gold from further rise. Unfortunately, more hawkish outlook by the FED (than we expected) poses short-term threat to rise of gold.
Trade active:
Gold breaks above the key technical level at 1835 USD. We are very bullish on gold.
Trade closed: target reached
Check us out at www.tradersweekly.com
