Gold bullish setup for new highs

Gold price is stabilizing above $1,550 and this is positive for bulls. Price has retraced a bit more than 38% of the rise from $1,445 and there are many chances we see price revisiting $1,600 and higher. The form of the decline is corrective thus far while price has started a new upward move from $1,535.

Red rectangle- resistance area

Green rectangles- support signs

The long lower tail candlesticks imply that strong buyers support price for a move higher. Price is at resistance area of $1,560-63 as we have noted from previous posts. Recapturing this area will increase the chances of making a move to $1,600 or higher. Short-term support is at $1,548 and bulls do not want to see price below that level. This could lead to a new lower low towards $1,510.

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Green lines – bullish channel

Gold price is inside the green bullish channel. It is important for bulls to stay above the lower channel boundary. As long as this is the case short-term trend will remain bullish. We are bullish as long as price is above $1,548 and specially if price breaks above $1,565. If support fails to hold we expect Gold price to make new lows towards $1,510 where the 61.8% Fibonacci retracement of the rise from $1,445 is found and the previous break out zone, once resistance, now support.

The material has been provided by InstaForex Company – www.instaforex.com

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MOKAR

Author: MOKAR

Mula berdagang dalam pasaran forex sejak tahun 2003. Manakala pasaran bursa saham tempatan dan global pada tahun 2018. Menjadikan trading online sebagai kerjaya sepenuh masa pada tahun 2019. Kerjaya sebelum ini adalah seorang salesman kereta. Berpengalaman dengan pelbagai teknik dan perguruan tetapi akhirnya sangat serasi dengan teknik FMCBR @ Fibo Musang melalui guruku Cikgu Baha & Cikgu Zul.

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