Gold forecast (Week May 31 - Jun 4)
Updated
Dear traders,
Gold has remained in the bullish trend. There's so far no clear technical reversal pattern in place yet.
However, we have to be cautious this week, as we might see some deep corrections ahead of us.
DXY:
- a lot of bullish news for dollar and the market last week
- DXY bounced off 89.6 support level several times, and have since moved back to 90.00 level.
- DXY has broken up from the downward wedge.
- DXY is attempting to break 90.2 - 90.4 resistance level.
https://www.tradingview.com/x/ZnnTqX4I/
Gold:
- Key note is the Friday spike down to 1882. This spike may signal further weakness in the metal.
- gold might be setting up for a megaphone pattern here.
- 1912.875 happens to touch the top trend line of the bullish trend structure. Backing off from that might signal some consolidations ahead is needed.
Key level is 1905.915.
Most favorable scenario: yellow arrow.
- with the latest bullish sentiment, i do not expect 1870 to be broken soon. 1876-77 is a key fibo level, so I will definitely respect that. In the case where we see 1870 again, there's a high chance bulls will jump into the game and send the metal higher.
Because we are still within the bullish trend structure, any downward movement are considered consolidation. I do not expect a deep one. But rather a more dragged out consolidation.
key levels to watch this week:
- 1905.915
- 1889.617
- 1876 - 1877
- 1870.000
Gold has remained in the bullish trend. There's so far no clear technical reversal pattern in place yet.
However, we have to be cautious this week, as we might see some deep corrections ahead of us.
DXY:
- a lot of bullish news for dollar and the market last week
- DXY bounced off 89.6 support level several times, and have since moved back to 90.00 level.
- DXY has broken up from the downward wedge.
- DXY is attempting to break 90.2 - 90.4 resistance level.
https://www.tradingview.com/x/ZnnTqX4I/
Gold:
- Key note is the Friday spike down to 1882. This spike may signal further weakness in the metal.
- gold might be setting up for a megaphone pattern here.
- 1912.875 happens to touch the top trend line of the bullish trend structure. Backing off from that might signal some consolidations ahead is needed.
Key level is 1905.915.
Most favorable scenario: yellow arrow.
- with the latest bullish sentiment, i do not expect 1870 to be broken soon. 1876-77 is a key fibo level, so I will definitely respect that. In the case where we see 1870 again, there's a high chance bulls will jump into the game and send the metal higher.
Because we are still within the bullish trend structure, any downward movement are considered consolidation. I do not expect a deep one. But rather a more dragged out consolidation.
key levels to watch this week:
- 1905.915
- 1889.617
- 1876 - 1877
- 1870.000
Note
if we break above 1905.915 level, we expect to see 1920 this week.I do expect a consolidation is imminent in either situation. 1959 target will not likely be happening this week.
Note
in the case where we see 1920 this coming week, there's a high chance that we will remain in range bound trade between 1920 and 1910. furthest down will likely be 1906.
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