Gold Price Approaches Important Resistance Zone
Gold is currently trading around $2,638/ounce, continuing its strong rally after rising $48 in the previous session. The main drivers of the rally are geopolitical tensions and the stability of the USD.
Gold is in a strong recovery phase from its low around $2,580. However, the medium-term downtrend has not been broken yet as the EMA 89 is still acting as resistance.
Resistance and support:
Nearest resistance: The $2,650-2,660 area, which coincides with the EMA 89. This is an important area to confirm a bullish reversal.
Support: The $2,600 area, if broken, gold could retest the old low around $2,580.
Price pattern:
On the 4-hour chart, gold is approaching an important resistance zone. If there is a price rejection signal, the possibility of correction will be very high.
Personal opinion:
Gold price is likely to test the $2,650-2,660 zone in the short term. However, with current technical indicators, selling pressure at the resistance zone will be very high. If the price fails to break through this zone, the possibility of correction back to $2,600 is quite high. On the contrary, if it breaks through, the next target will be $2,700.
Trading strategy:
Sell at the $2,650-2,660 resistance zone, set Stop Loss at $2,670, Take Profit at $2,600.
Buy when the price breaks through $2,660, set Stop Loss at $2,640, Take Profit at $2,700.
Gold is in a strong recovery phase from its low around $2,580. However, the medium-term downtrend has not been broken yet as the EMA 89 is still acting as resistance.
Resistance and support:
Nearest resistance: The $2,650-2,660 area, which coincides with the EMA 89. This is an important area to confirm a bullish reversal.
Support: The $2,600 area, if broken, gold could retest the old low around $2,580.
Price pattern:
On the 4-hour chart, gold is approaching an important resistance zone. If there is a price rejection signal, the possibility of correction will be very high.
Personal opinion:
Gold price is likely to test the $2,650-2,660 zone in the short term. However, with current technical indicators, selling pressure at the resistance zone will be very high. If the price fails to break through this zone, the possibility of correction back to $2,600 is quite high. On the contrary, if it breaks through, the next target will be $2,700.
Trading strategy:
Sell at the $2,650-2,660 resistance zone, set Stop Loss at $2,670, Take Profit at $2,600.
Buy when the price breaks through $2,660, set Stop Loss at $2,640, Take Profit at $2,700.
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