Gold Struggle continues having Bullish Trendline Support carrying the price higher. The price did manage to gain certain upward pressure but failed to sustain above $1567. Let’s check Gold Technical Analysis for more levels and insights.
January 24, 2020 | AtoZMarkets.com – Gold is currently residing between price range of $1550 to $1567. The price did manage to reject off the $1567 and push lower in the process. Though the Bullish Trend is still in play, further upside momentum is expected as the time unfolds.
One of the strongest driver of Gold decline is recent WHO’s declaration. Recently World Health Organization (WHO) stated that “Coronavirus does not yet constitute as a Global Emergency”. As the virus emergency currently is only based in China so it has no chance to spread around the globe in near future.
Despite the fact, Traders and Investors are still quite indecisive about the outcome which resulted to further indecision and indefinite trend momentum in the process. As price remains above $1550 support, the Gold’s Bullish bias may continue with target towards $1600.
Gold struggle to reach $1600 bouncing off Bullish Support
Gold has been impulsive with the recent Bullish momentum as it bounced off the $1550 area. The Bullish trend still persist while it remains above $1550 trend line support. The dynamic level 20 EMA and Kijun line is currently residing below the price as support which may create confluence for the upcoming bullish pressure in the making.
image: Gold 1 Hour Chart
According to 1 hour chart, the price managed to bounce off the Trend line support at $1550 area. After the bounce the price regained impulsive momentum but could not sustain the pressure above $1567. On MACD, there is currently no Bearish Divergence in the making which indicates Bullish presusre may continue. The Chikou Span residing at the price line may bounce higher and confluence the upcoming upside pressure towards $1567 or higher. As the price remains above $1560 with a daily close, the Bullish bias may continue further.
Further Bullish Trend extension supported by Trend Line
Gold has been strongly Bullish since the price bounced off the $1250 area since May 2019. Gold price is currently residing above $1560 while having confluence from the dynamic level and trend line. The dynamic levels such as 20 EMA, Tenkan and Kijun line is currently below the price line acting as support. The trendline started since May 2019 was retested at $1460 on October 2019. The overall Bullish trend is strong and may sustain further taking the price towards $1600 i the coming days.
image: Gold Daily Chart
Currently, MACD lines are intersected each other above 0.00 line which is indicating certain Bearish pressure in the making. According to the long-term context, the Bullish bias is intact but certain correction and retracement may be observed.
To Conclude, Gold may push higher towards $1600 area in the coming days. As the Bullish pressure continues, certain correction and throwback may be observed along the way.