GOLD - Can Rise More But Limited Gains Ahead
Updated
Gold was able to stablize above 200-day MA at 1810 for a couple of sessions, and today it made a higher high for the daily session. Sure gold looks bullish short term given indicators reading but now gold is facing important resistance zone around 1825-1835.
Please note that 50-week MA is at roughly 1825. And for the past bullish trend in 2019-2020, this 50-week MA has provided supports for the trend. Now gold must overcome and close a minimum of 1 to 2 weeks above this 50-week MA or rougly 1825 for further bullishness.
The left structre also shows big resistance around 1830-1835 level when gold failed a few attemps in August which created a double top.
Hence in short term gold could rise a little bit more but it is quite vulnerable for a correction. The bullish structre also looks weak given that the recent rise from 1675 looks kinda choppy.
It might be a good idead to short from resistance zone 1825-1835 with strict stop loss. If gold drops from this level, 1st support around 1790-1800 and 2nd support around 1750-1765.
Please note that 50-week MA is at roughly 1825. And for the past bullish trend in 2019-2020, this 50-week MA has provided supports for the trend. Now gold must overcome and close a minimum of 1 to 2 weeks above this 50-week MA or rougly 1825 for further bullishness.
The left structre also shows big resistance around 1830-1835 level when gold failed a few attemps in August which created a double top.
Hence in short term gold could rise a little bit more but it is quite vulnerable for a correction. The bullish structre also looks weak given that the recent rise from 1675 looks kinda choppy.
It might be a good idead to short from resistance zone 1825-1835 with strict stop loss. If gold drops from this level, 1st support around 1790-1800 and 2nd support around 1750-1765.
Trade closed: target reached
Closed posy at 1796. Gold could go down more but good profit so no need to be greedy.
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