Gold Update: China's Stimulus Limits Bearish Action
Gold turned Bullish after some comments that China will enhance stimulus plan to increase economy, hence there will be probably more room for demand in the Gold purchases.
Key levels to consider:
• Neutral Indicators: For over 15 days, the ADX indicator line has shown a consistent decline, now positioned below the 20 level. This indicates that the average volatility of the last 14 sessions is in a neutral zone, reducing the bullish trend strength. That said, a lack of buying momentum is anticipated in the upcoming sessions.
• Triangle Formation: The upper level represents a key resistance for gold at $2,700, and if surpassed, it could generate short-term bullish movements. Conversely, the lower level lies at the base of the triangle, around $2,600, where bearish oscillations near this level could break the continuation pattern of the current trend.
o $2,800: A critical resistance zone corresponding to the all-time high price. Breaching this level could sustain the long-term bullish trend and maintain a buying perspective over time.
o $2,500: The most significant support on the chart, where a breach could jeopardize the current bullish trend and consolidate bearish positions.
Bullish trend continue to be there but we have to wait for the latest economic data of the year.
Key levels to consider:
• Neutral Indicators: For over 15 days, the ADX indicator line has shown a consistent decline, now positioned below the 20 level. This indicates that the average volatility of the last 14 sessions is in a neutral zone, reducing the bullish trend strength. That said, a lack of buying momentum is anticipated in the upcoming sessions.
• Triangle Formation: The upper level represents a key resistance for gold at $2,700, and if surpassed, it could generate short-term bullish movements. Conversely, the lower level lies at the base of the triangle, around $2,600, where bearish oscillations near this level could break the continuation pattern of the current trend.
o $2,800: A critical resistance zone corresponding to the all-time high price. Breaching this level could sustain the long-term bullish trend and maintain a buying perspective over time.
o $2,500: The most significant support on the chart, where a breach could jeopardize the current bullish trend and consolidate bearish positions.
Bullish trend continue to be there but we have to wait for the latest economic data of the year.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.