Gold had long choppy month. After the FOMC meeting last Wednesday, Gold enacted a surge up after bottoming out. Now, the direction seems clear towards the uptrend continuation.

- Market structure: Gold has been range bound in a bullish market structure. It had been hovering between two price ranges of 1790- 1815. After the Fomc, we saw a strong rejection from the support area and market continued moving up to the resistance of 1834. Now that we have noticed HH, we will wait for a HL to be formed on GOLD to continue up. Market is at the resistance turn support level right now where we will form confluence with other factors to go LONG.

- Trendline: Previoulsy, the descending trendline was broken out for buys. The breakout was enforced with a bullish candle and validated after candles kept opening and closing above the trendline. On the other hand, we have an ascending trendline, which is below the current price. We might see a rejection of this trendline.

- Retracement: At the current support where market is holding, this region fully encapsulates the 50-61.8% retracement region. This region is strong as well but not as strong as the golden area region. Given that we have a support here and market is at a retracement zone, this has two confluence points.

- EMA's: EMA 50 and EMA 200 just incurred a bullish death cross on the H4. This means, we are bullish for the mean time. Also, both EMA’s are being tested at this current support. This gives us an added confirmation for longs. The strength of this retest can be deduced by the fact that EMA’s are retested at the same time, after the breakout: that too at support.

- RSI/CCI: RSI is in a slight bearish level at 49, whereas CCI is at -118. Given the bullish direction, both oscillators are in a bearish zone. We will wait for at least RSI to turn bullish once GOLD starts to move out of the support region.

Gold has a very decent setup at the current prices. If this level is not held, the below level of 1800 is another attempt to go long.

Gold clear for bullish impulse

Aug 01 2021

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