After continuous parabolic moves on the gold, it finally dropped to the support level of 1795-1800, which was anticipated since our last analysis.

- 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 bullish impulse from the support area towards 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. As the 1800 level, we saw a strong support being formed and stopping the market.

- Trendline: We have two trendlines in play for the GOLD. Previously, a descending trendline broke by the bullish impulse. Right now, it is currently retesting the broken trendline. Secondly, we have an ascending trendline, which is being tested, by the market at the support level. This gives us an additional confirmation for longs.

- Retracement: At the current support where market is holding, the retracement level of 75-78.6% confluences. Given the time bracket of the retracement pivot points, this retracement is deemed to take an impact on the falling price, which it did.

- EMA's: EMA 50 and EMA 200 had a death cross for the bullish trend. As both the EMA’s are closely compressed, they were broken out earlier. The retest is pending which may see later on NFP or next week.

- RSI/CCI: RSI is at 41 and CCI is recovering back from the over-sold region of -172. If RSI move above the 50 level, we can have an additional confirmation for buys. Also we do see a hidden bullish divergence formed on both the oscillators.

Tomorrow on 6Th August, we have NFP news, which highly impacts the gold. At this current support, we foresee a bullish wave continuing up, with high impact of NFP. Its risky to trade the NFP so we have to risk as little as possible.

GOLD might be bullish in NFP

Aug 05 2021

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