Gold - Does bullish breakout mark the beginning of an uptrend?
Updated
Gold broke above the key technical level at 1835 USD. Furthermore, it moved above 1850 USD and then reached a high of 1871 USD. Overall, these developments are very bullish; indeed, they may possibly mark the beginning of a bullish trend in gold. We are currently very bullish on gold and because of that we would like to set short-term price target for XAUUSD to 1875 USD and medium-term price target to 1900 USD.
Technical analysis - daily time frame
RSI is bullish. MACD and Stochastic are also bullish. DM+ and DM+ show bullish conditions in the market as well. ADX started to increase which suggests the bullish trend has resumed. Overall, the daily time frame is very bullish.
Illustration 1.01
Picture above shows the daily chart of XAUUSD. It also shows the most recent bullish breakout above 1835 USD.
Technical analysis - weekly time frame
RSI is neutral while MACD and Stochastic are bullish. DM+ and DM- are bullish too. ADX remains low. Overall, the weekly time frame is bullish.
Support and resistance
Closest resistance sits at 1877.14 USD. Resistance 1 is at 1916.615 USD and Resistance 1 at 1965.572 USD. Major resistance lies at 2075.282 USD while major support sits at 1677.686 USD. Support 1 can be found at 1750.740 USD and short-term support at 1834.195 USD.
Please feel free to express your own ideas and thoughts in the comment section.
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 is bullish. MACD and Stochastic are also bullish. DM+ and DM+ show bullish conditions in the market as well. ADX started to increase which suggests the bullish trend has resumed. Overall, the daily time frame is very bullish.
Illustration 1.01
Picture above shows the daily chart of XAUUSD. It also shows the most recent bullish breakout above 1835 USD.
Technical analysis - weekly time frame
RSI is neutral while MACD and Stochastic are bullish. DM+ and DM- are bullish too. ADX remains low. Overall, the weekly time frame is bullish.
Support and resistance
Closest resistance sits at 1877.14 USD. Resistance 1 is at 1916.615 USD and Resistance 1 at 1965.572 USD. Major resistance lies at 2075.282 USD while major support sits at 1677.686 USD. Support 1 can be found at 1750.740 USD and short-term support at 1834.195 USD.
Please feel free to express your own ideas and thoughts in the comment section.
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 closed: target reached
Short-term price target of 1875 USD has been reached. We change medium-term price target of 1900 USD to short-term.
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