Long

GOLD → Retest of 2050. Can the price go even higher?

Updated

is breaking through strong resistance and testing the 2050 area, favorably influenced by the fundamental background from Thursday. The market is trying to move into a bullish phase, but globally the price is held back by a huge sideways flat.

Idea from 29.02: GOLD → Consolidation is narrowing. The calm before the storm

On H4 we see the price trying to form a consolidation above the previously broken trend lines of resistance. Support at 2041 is now playing an important role. Since the opening of the session on Friday, gold tested this area with a false breakdown, after which a bullish impulse was formed and XAU is already testing the resistance 2048.

Img: Current situation: resistance breakout on H4

A break of this area will confirm the price going beyond the correction, which may help the upside to 2057-2060. But, a correction from 2048 is possible before a further rise to the above targets, and we should also pay attention to today's news. It is necessary to watch the price reaction to this zone.

Resistance Levels: 2047.8 - 2049, 2057
Support levels: 2044, 2041

I expect the growth to continue, because both technically and fundamentally, the market is pointing to it now. But, there may be a fall in the price if the structure of 2044-2041 is broken. In this case, the price may head towards the channel support

Regards R. Linda!

Note

Of Importance:
Analysts expect PMI to be bullish for the dollar.
This is logical, but at this market stage the odds are higher that the data could be worse than expected. This could have a negative impact on the dollar index. But again, against the backdrop of the US president and regulators' policies, the numbers could be better as the objective is to keep the dollar in the current range.

Today we should also pay attention to the FED & FOMC speeches, where most likely the interest rate and inflation issues will be discussed.

Note

The last few days have been getting negative news for the dollar. Which I was still starting to talk about on Wednesday.
The US market has put too many problems on itself and is still not coping well.
It is likely that at the next speech Powell will again talk about a rate hike....

Trade closed: target reached

Note

Gold is testing 2088. What happened?

Consolidation is formed not by ordinary traders, but by market managers, i.e. market makers. While the price was in the range, the market maker was gaining liquidity. As soon as the market maker collects the volume he needs, he removes the orders that delimit this range and the price, free, flies up or down. And when resistance is broken, this movement was supported by the worked stop orders of sellers and purchases of those who opened long positions.

Around Wednesday-Thursday we started to get preconditions for resistance breakout. I wrote about it in my ideas and prepared you for it.

I wrote about the strength of the distribution once before. It all depends on how long the consolidation takes to form and how much it narrows.

And the news on Wednesday-Thursday and Friday favorably influenced the distribution.
Here you can see the result of almost 500 points.

RLinda

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