DISCLAIMER: I am not a financial advisor nor certified analyst and definitely not a pro trader. All contents discussed on this blog are solely my own personal views and for Trading education/entertainment purposes only. Commodities/Precious Metals Trading is very risky especially when traded with leverage and CFDs. Losses can exceed deposits. Enter with discretion.
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Good day all. It has been a while since I have shared my latest technical analysis on the global markets but I thought today it will be great to send a new one especially on the Gold which captured my attention.
The XAUUSD monthly chart for August just performed a very bullish candle which has a long bottom wick which we all know telling us of a strong buying pressure knowing the fact that we are referring a high time frame.
Gold’s weekly volumes are also up in green in the last 3 weeks which suggesting fresh long entries.
The recent breakout on the important $1,800 price level might support Gold’s uptrend rally towards the psychological $2,000 mark knowing the fact that the yellow metal has always been one of the choices for a safe haven asset in the global markets’ perspective.
I am speculating traders and investors will wait for the final outcome now that Fed’s chair Powell has continue to push through for a tapering probably by the end of the year 2021. We must not forget that we are still facing on-going pandemic with its latest variant Delta in play wrecking havoc in the world’s economy. So an increase of volatility is always out there waiting.
Anyways, I will layout a trading plan for the Gold against the US dollar. Technically, a lot of resistances up above waiting starting from $1,835 which kept the yellow metal’s price at bay for seven consecutive weeks. It also happened that it is the weekly 50 SMA acting as a short term resistance. I see the weekly chart with mixed technical meters, the simple moving averages hinting for a correction while both the MACD and RSI indicators is ready for a bullish divergence.
I will make a bet and will be long for the Gold. I think $1,800 will act as support next time a small correction comes into play. Just a simple prediction since it was also one of the small resistances that halted Gold’s price higher so a bid confirmation will be good which will be a good entry, I keep an eye on $1,750 as stop loss which coincides the weekly 100 SMA. Definitely the psychological price level $2,000 is a good take profit exit.
This trading plan would roughly give us a risk:reward score of 4.00 which I like to give a shot.
Have a great trading week ahead and stay safe.
