Gold Continued Bullish Run above $1560 may reach $1600 again. Despite the recent Bearish impulsive pressure, Bulls regained momentum and heading higher. Let’s check Gold Technical Analysis for more levels and insights.
February 13, 2020 | AtoZMarkets.com – Gold is currently residing above $1570 area with strong impulsive Bullish momentum. After the recent bounce from $1550 area, Gold Bullish Momentum sustained quite well which may lead higher towards $1600 area again.
Due to global economic problems including Coronavirus and Potential War scenario with Iraq, investors are currently looking for alternatives. Equity market did manage to gain certain momentum recently but struggling to sustain it. As a result, investors are currently looking forward to Gold and Bitcoin as safe haven investments.
According to Commodity Strategist Eric Scoles, “There is heavy net long position by Gold traders which has limited upward price reaction and creating a risk of washout for longs. But There are also too many potential catalysts for many to be willing to risk a short position.”
Gold Continued Bullish Run breaking Dynamic Levels as Confluence
Gold is currently residing above $1570 area while breaking above the dynamic levels. The price is heading towards $1585 resistance area where it may hold for cetain period.
image: Gold 4 Hour Chart
According to 4 hour chart, the price broke above Kumo Cloud support as well as other dynamic levels. The dynamic levels like 20 EMA, Tenkan and Kijun line recently had Bullish Crossover indicating further up move. Additionally, MACD lines residing above 0.00 line also indicates further upside pressure which act as confluence currently. Gold Continued Bullish run quite well after the recent retrace from $1560 area. As the Bullish momentum builds further, the price may retest $1585 area before Gold reaching $1600 area in the coming days.
Gold may face Resistance at $1585
image: Gold Daily Chart
Gold is currently quite impulsive with the Bullish momentum. After Gold recent retest at $1560 area, the price gained impulsive momentum. According to daily chart, the price is currently residing above $1570 but may find resistance at $1585. Before reaching $1600 target area, Gold Bullish run may pause for a certain period upon reaching $1585 area.
As there is no indication of Bearish Divergence along the way or any contradicting factors, Gold may Continue it’s Bullish run smoothly. As the price breaks above $1585 area in the coming days, further upward pressure may lead the price to $1600 area.
To conclude, Gold is heading higher towards $1600 area as target but may find $1585 as resistance along the way. As the price remains above $1560 area with a daily close, the Bullish bias may continue further.