XAUUSD: Can it really target 2,850 by the end of the year??
Gold is vastly overbought on its 1D technical outlook (RSI = 80.447, MACD = 42.840, ADX = 50.847) and the reason is that since last month's (March) breakout and monthly closing above the 2020 Resistance, it started a new bullish hyper Cycle. It is overbought on the 1W RSI also (74.802) while the monthly (1M) is only a fraction away too (RSI = 69.871). This is a heavily aggressive long term trend that until its peak won't offer many pullbacks and those will be limited.
This 1M chart shows that according to the 1M RSI we're where Gold was on the August 2019 breakout on the previous Cycle. Before that both patterns pulled back and held the 1M MA50 and 0.5 Fibonacci level. The rally that followed the breakout, peaked at +98.09% from the bottom (Fib extension 3.0). The current pattern is at +25% since the 1M MA50 and 0.5 Fib rebound and another +25% until the end of the year would also complete +98.09% from the bottom. Our end of year Target is exactly on that level (TP = 2,850).
See how our prior idea has worked out:
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This 1M chart shows that according to the 1M RSI we're where Gold was on the August 2019 breakout on the previous Cycle. Before that both patterns pulled back and held the 1M MA50 and 0.5 Fibonacci level. The rally that followed the breakout, peaked at +98.09% from the bottom (Fib extension 3.0). The current pattern is at +25% since the 1M MA50 and 0.5 Fib rebound and another +25% until the end of the year would also complete +98.09% from the bottom. Our end of year Target is exactly on that level (TP = 2,850).
See how our prior idea has worked out:
## If you like our free content follow our profile to get more daily ideas. ##
## Comments and likes are greatly appreciated. ##
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