DISCLAIMER: I am not a financial advisor. All contents on this blog are solely my own personal views and for Precious Metals/Commodities/CFDs Trading education/entertainment purposes only. Precious Metals/Commodities/CFDs Trading are very risky. Losses can exceed deposits. Enter with discretion.
Gold had turned bearish from a validated a death cross pattern last February 16, 2021 paving way for sellers to take full control. Since then the yellow metal traded into descending channels hitting recent local bottom found at the $1676 level.
March 9 intraday finally marked the end of bear’s control as XAUUSD perfectly created double bottom candles. Trade volumes shifted into the buyers’ control as the said intraday printed a solid, green and bullish candle since the death cross date.
As we can see over the Gold’s daily chart, the following 6 candles including today formed a bullish ascending pattern strongly supporting the shift of the daily MACD into a bullish divergence last March 12, 2021. We will expect more upside potential towards the shiny metal’s price through the long and bullish wick from the same day on March 12 suggesting a strong buy pressure.
Yesterday’s candle close formed a Long-Legged Doji with very long upper and lower shadows indicating strong forces balanced in opposition. I will be bullish bias for the Gold moving forward where the double top candles formed last March 2-3 period are currently acting as key resistance for the bulls to break. This key resistance level found at $1740 level has been re-tested twice since the mentioned double top candles were formed.
Once the bulls manage to push the price higher, my trading plan is to buy the confirmation at $1750 and take profit targeting near the 200 day SMA approximately $1850 where I speculate as a massive area of supply. I set my stop loss in the median level between the Fibonacci retracement numbers 0.236 and 0 in reference for the January 21 high and March 8 low. This trading plan has a risk:reward ratio of 2 which I find decent enough.
As last part of my technical outlook for today, I also speculate that the Gold price will keep up with the stronger US dollar. Investors and traders alike will likely to see some action towards the yellow metal as they keep a close eye on upcoming FED decision. For now, XAUUSD will keep enjoying its 2-week high with confidence.
