Gold bullish rally may continue higher despite the retracement towards $1535 support area. Certain bounce off the support may lead the price towards $1610 or higher. Check today’s Gold Technical Analysis for more levels and insights on the yellow commodity.
January 14, 2020 | AtoZ Markets – Gold has been non-volatile with the recent bullish trend after bouncing off the 1450 price area. However, the bullish market momentum was quite impulsive, which managed to break above $1500 again informing about the presence of substantial bullish bias in the market.
Gold has been considered as a safe-haven investment since the US-China trade war took place. Moreover, Gold recently hit the 1610 price area after Iran launched rockets at U.S. airbases established in Iraq. As per current price action and market flow, the bullish pressure expected continue. However, it might break above 1610 high if the current retracement towards 1535 support area managed to hold and push the price higher.
GOLD Technical Analysis – January 14, 2020
The price did manage to sustain the bullish momentum with the strong rally, which created a new high at 1610 area. Currently, the price is residing at the edge of 1535 support area after certain retrace lower from the recent peak. The support area at 1535 proved earlier to be a strong level. It has also a greater probability of holding the price higher and pushing the price to a new high in the coming days.
image: Gold 4 Hour Chart
Recently the price pushed lower in the form of retracement from the peak area of 1610. It formed Bullish Continuous Divergence along the way. In the 4-hour chart, the price progressed lower whereas the MACD histogram pushed Higher. Bullish Divergence formed off the support area may act as a strong confluence for upcoming bullish pressure.
image: Gold Daily Chart
As per Daily Chart price action, the price is residing at the edge of event-level 1517-1535 support. After breaking above the declining channel, the price is currently reverting to the 20 EMA. The consistent bullish momentum which helped to break above the 1500 price area may help push higher. It can create a new high above 1610 in the coming days.
As per Ichimoku Perspective, the Kijun line is currently flat at 1535 area. The dynamic level of 20 EMA may act as secondary dynamic support. There is no specific sign from Chikou Span and Kumo Cloud about any reversal currently. It indicates the continuation of the bullish trend in place without much of bearish intervention along the way as the price remains above 1500 area with a daily close.
In conclusion, the bullish trend of GOLD is strong. It may surpass the recent peak of 1610. It can reach 1650 resistance area in the coming days. However, a break below 1500 can change current bullish bias which can also lead to certain bearish pressure.