Shortly after surpassing the key $3,000 per troy ounce level, gold continues to trade with gains of over 1.5% in the past three trading sessions. Buying pressure has remained steady as risk appetite has declined due to concerns stemming from the ongoing trade war. This situation has allowed gold to capitalize on its safe-haven status, attracting demand that has shifted away from riskier markets. At the moment, the primary trend remains bullish on the chart.
Bullish Channel:
Since the first days of January, a solid bullish channel has formed, which has now surpassed the $3,000 per ounce barrier. For now, this remains the most relevant formation to watch in the short term, as no significant bearish pressure has emerged in recent sessions to alter this perspective.
Potential Correction:
However, by analyzing RSI oscillations, we can see that the RSI line remains above the 70 level, which is considered the overbought zone. Additionally, higher highs in price, combined with lower highs in RSI, suggest a possible short-term divergence. Both signals indicate a potential imbalance in market forces, opening the door for a short-term bearish correction.
Key Levels to Watch:
By Julian Pineda, CFA – Market Analyst
Bullish Channel:
Since the first days of January, a solid bullish channel has formed, which has now surpassed the $3,000 per ounce barrier. For now, this remains the most relevant formation to watch in the short term, as no significant bearish pressure has emerged in recent sessions to alter this perspective.
Potential Correction:
However, by analyzing RSI oscillations, we can see that the RSI line remains above the 70 level, which is considered the overbought zone. Additionally, higher highs in price, combined with lower highs in RSI, suggest a possible short-term divergence. Both signals indicate a potential imbalance in market forces, opening the door for a short-term bearish correction.
Key Levels to Watch:
- $3K: New key support, representing the most significant psychological level in recent weeks. This could be a potential area for short-term bearish corrections.
- $2.9K: Relevant support zone, aligning with the lower boundary of the bullish channel. Sustained downward movements below this level could put the current bullish formation at risk.
By Julian Pineda, CFA – Market Analyst
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.
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.