XAUUSD GOLD Forecast: Definitely a SELL/SHORT for the week
Updated
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As seen on the H1 and D1 Time frame, GOLD has repeated touched the top of ascending channel line, which has proved to be a strong resistance to break. A quick breakout on 7 May 2020 has brought XAUUSD above the channel, however proving inadequate to maintain gold above 1710, an important big round number to watch.
Thereafter, it created its 3rd BEARISH DOUBLE TOP, with a big sell off down to 1700 at the moment.
Technical Indicators MACD and stochastics both indicate strong BEARISH PRESSURE:
- MACD heavy in the red with strong selling volumes matching that on 7 May 2020
- Stochastics definitely below the 20 point, in the SELL ZONE
Our target for a SHORT Opportunity would be to the next major support line @ 1685 (I would take TP1 @ 1693 TP2 @ 1685), near the bottom of the channel line. This area 1680-1685 has the overlap of 2 support lines, where we look for a rebound from here and a LONG Opportunity if it happens.
Fundamental Analysis:
- Investors turning to bullish sentiment on stocks as Wall Street’s Dow S&P 500 and Nasdaq indexes all rose more than 1%, betting on U.S. business reopenings from Covid-19 forced lockdowns. Support pledged by Chinese trade negotiators for the phase-one of their trade deal with the U.S. also bolstered sentiment on Wall Street. These have led to the rise in risk appetite, away from gold futures as investors hope to cash in on reopening businesses.
I believe 1737 is probably the highest we have reached (23-24 april 2020), now appears that gold is reversing its trend into a BEAR MARKET
Just my two cents, as always FEEL FREE TO LIKE AND FOLLOW IF YOU ENJOYED THE POST
Regards,
Gol D Roger
As seen on the H1 and D1 Time frame, GOLD has repeated touched the top of ascending channel line, which has proved to be a strong resistance to break. A quick breakout on 7 May 2020 has brought XAUUSD above the channel, however proving inadequate to maintain gold above 1710, an important big round number to watch.
Thereafter, it created its 3rd BEARISH DOUBLE TOP, with a big sell off down to 1700 at the moment.
Technical Indicators MACD and stochastics both indicate strong BEARISH PRESSURE:
- MACD heavy in the red with strong selling volumes matching that on 7 May 2020
- Stochastics definitely below the 20 point, in the SELL ZONE
Our target for a SHORT Opportunity would be to the next major support line @ 1685 (I would take TP1 @ 1693 TP2 @ 1685), near the bottom of the channel line. This area 1680-1685 has the overlap of 2 support lines, where we look for a rebound from here and a LONG Opportunity if it happens.
Fundamental Analysis:
- Investors turning to bullish sentiment on stocks as Wall Street’s Dow S&P 500 and Nasdaq indexes all rose more than 1%, betting on U.S. business reopenings from Covid-19 forced lockdowns. Support pledged by Chinese trade negotiators for the phase-one of their trade deal with the U.S. also bolstered sentiment on Wall Street. These have led to the rise in risk appetite, away from gold futures as investors hope to cash in on reopening businesses.
I believe 1737 is probably the highest we have reached (23-24 april 2020), now appears that gold is reversing its trend into a BEAR MARKET
Just my two cents, as always FEEL FREE TO LIKE AND FOLLOW IF YOU ENJOYED THE POST
Regards,
Gol D Roger
Trade closed: target reached
SELL closed at 1700, a strong support level, FOR PROFIT.I see a possible retest of the top of channel line @ 1715
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