Gold bounced higher from $1550 support area and the Bulls may recover further higher. After an extended period of Bearish pressure, Bulls found support at $1550. Let’s check Gold Technical Analysis for more levels and insights.
March 13, 2020 | AtoZ Markets – Gold failed to continue the Bullish pressure and broke below $1625 support area. Recently, Gold was quite impulsive and non-volatile with the Bearish pressure. The Bulls may now recover higher if Gold holds the price above $1550 area in the coming days.
Gold price drop in Asia today, after the U.S. stock market walking on its worst days since 1987. Investors are looking forward to Gold may gain momentum as before Gold proved its self as a safe-haven market. Gold lost its key $1600 support on Thursday after investors take out their long positions in the Gold. It may happen because to cover margin and losses on Wall Street after the U.S. ban most incoming resource the European travellers as fear of Coronavirus epidemic.
Gold Bounce Higher may Face Resistance at $1590
The price is currently trading at $1580 area after Gold bounce higher from support. Gold Bears weakens after the price touch $1550 key support area. The Bulls may soon take over the market if the price can break above the resistance.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently residing near $1580 area and facing resistance at $1590. Gold Bulls engulfed the last 4-hour candle after the price met support at $1550 and Gold bounced higher. As per current price action, the Bulls need to break above the $1590 resistance area, before continuing further higher towards $1625 area. Unlike, if Bulls failed to break above, the Bears might decline further towards $1550 area again.
Moreover, the dynamic level of 20 EMA is residing above the current price. It may pull the price higher towards our expect $1625 area as Mean Reversion. On the other hand, the MACD lines are residing below 0.00 level and may Bullish cross over in the making.
Gold Bulls Find Support at $1550 Area may Recover Higher
According to the Daily Chart, Gold is currently residing near $1690 area after Gold bounced higher from $1550 support. After a strong Bearish rejection from $1700 area, Gold pushes lower towards $1550 area quite impulsively. If Gold can have a daily close above $1550 area, the Bulls may recover further higher with the target of $1700 area in the coming days.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line and the Tenkan line. It may pull the price higher as Mean Reversion. Besides, the MACD indicator’s histogram volumes are showing high volume as Bulls are pushing the price higher.
To conclude, Gold Bears may weaken now. If the Bulls can maintain the price above $1550 support area with a daily close, there is a high chance of Bulls may recover further higher in the coming days.