Gold inside Support Zone may Continue Bullish Trend with target towards $1600. Despite the recent impulsive Bearish move, certain upward pressure may occur. Let’s check Gold Technical Analysis for more levels and insights.
February 6, 2020 | AtoZMarkets.com – Gold is currently residing inside the corrective price range between $1550 to $1560 area. The price having strong impulsive Bearish momentum since it rejected off the $1592 area may push higher again. The price is still in corrective phase and further upward momentum is still indecisive without a strong break higher.
As per reports, Coronavirus solution has been found by a team of researchers. They stated that drug Abidol and Darunavir can heal Coronavirus patients. There is still no strong proof to support it yet but it already helped Hang Seng Index to gain 3% while Gold fell drastically.
World Health Organization (WHO) did not confirm any effective solution for the virus yet. So, the report about the solution cannot be trusted totally. So far, Coronavirus has taken more than 500 lives and spread to at least 20 countries. Chinese Central Bank injecting Billions of Yuan also effect the gains of safe-haven asset Gold. As the Coronavirus solution is still indecisive, Gold may push higher again as the investors diverts from equities.
Gold pushing Higher to Continue Bullish Trend
Gold is currently showing certain Bullish momentum after bouncing off the $1550 area. The price also seemed to find support near 200 EMA while $1550 holds the price to fall further downwards.
image: Gold 4 hour chart
According to 4 hour chart, the price is currently ranging between $1550 to $1560 area. After the impulsive Bearish momentum since $1592, the dynamic levels like Tenkan and Kijun crossed with confluence. The impulsive Bearish pressure did manage to push lower but could not surpass the strong support level at $1550 area.
Gold inside Support Zone above $1550
Gold price area between $1550 to $1560 has already proved it’s worth earlier by pushing the price to the higest peak. Earlier when the price corrected at this price point, it shooted higher with strong bullish momentum. Though the dynamic levels may act as a barrier along the way higher, but as the Bullish momentum strengthens, further upside pressure may occur.
Additionally, MACD Histograms are squeezing higher while the MACD lines are at the verge of having a Bullish Crossover. MACD lines residing below 0.00 is currently getting closer to cross higher and confluence for further upside move in the coming days.
As per current price action, Gold remaining above $1550 will sustain the Bullish bias. Moreover, a break above $1560 with a daily close will lead to further confirmation for upcoming Bullish momentum with target towards $1600.
To conclude, Gold currently showing certain Bullish pressure may sustain further if a break above $1560 is seen. As the price remains above $1550 area, Gold Bullish Trend may continue to strengthen further in the coming days.