Gold opened Higher with Bullish Gap reaching $1600 in the process. The price managed to break above $1560 range bound and may push higher towards $1600 soon. Let’s check GOLD Technical Analysis for more levels and insights.
January 27, 2020 | AtoZMarkets.com – Gold managed to break above $1560 range resistance with strong Bullish momentum recently. Moreover, the price started the week with a Bullish Gap while residing at the edge of $1579 area. As the price aims higher, it may reach $1600 in no time.
While Oil struggling to sustain Bullish bias due to Coronavirus incident, Gold managed to gain momentum with good impulsive pressure. As fears of Coronavirus spreading around the globe, Equity market is struggling to keep the momentum. As a result, investors are currently diverting towards Gold again which is leading the price higher towards $1600.
Current Gold rise is quite remarkable and it managed to break above Three Week highs while other trading instruments struggling. Though Gold started slow but a break above $1600 may lead to create a new peak and may sustain the bullish pressure higher.
Gold to cover the Bullish Gap?
Gold opened the week with 85 pips of Bullish Gap which managed to tak the price towards $1588. For last 8 hours, the price managed to sustain bullish momentum above $1575. Currently the price is heading lower which might revert to the dynamic level 20 EMA, Tenkan and Kijun line before pushing higher again.
The price broke above the Kumo Cloud with the break which was quite remarkable. Such Breakaway Gap with Week Opening does indicate the intentions of the Bulls at the current situation. As the price broke above $1560 last week, The Chikou Span also managed to break above the Price Line which confluenced the overall Bullish pressure.
image: Gold 4 Hour Chart
According to 4 Hour Chart, the price is currently pushing lower as retracement towards $1570 area. As the price manages to push lower, the weekly Open Gap is going to be covered. Currently price being above $1560 is an indication of sustainability of the Bullish pressure which may continue higher.
MACD showing no Bearish Divergence or Bearish Cross among the lines are an indication of Bullish pressure in the market. The dynamic levels like 20 EMA, Tenkan and Kijun line is currently flat and may act as strong support to hold the price higher. As the price retraces lower, stronger bullish momentum may occur which can lead the price towards $1600 or higher in the coming days.
Gold to face strong Resistance at $1600
Gold is currently residing near $1600 despite the struggles which might be soon tested as the price correction fades along the way. Currently the price may struggle to push higher but upon reaching $1600 area, a strong Bearish pressure may occur which might even lead the price towards $1535 support area again.
image: Gold Daily Chart
According to Daily Chart, the price is residing quite far from the dynamic levels after bouncing higher from $1535 area. Currntly there is no indication of any strong Bearish pressure but rejecting off the $1600 area in the coming days may lead to strong Bullish Trend counter which can lead the price to $1535 again. So, it is very important to watch the price action ast he price reaches $1600 in the coming days.
To Conclude, Gold may correct and retrace lower towards $1570 before pushing higher but strong Bearish momentum can be seen upon reaching $1600 only.