DISCLAIMER: I am not a financial advisor. All contents on this blog are solely my own personal views and for Trading education/entertainment purposes only. Trading any form of market instruments is very risky. Losses can exceed deposits. Enter with discretion.

Good day all. It has been a while since I have shared my latest technical analysis on the global markets but I thought today it will be great to send a new one especially on the gold which captured my attention.

The XAUUSD monthly chart for August just performed a very bullish candle which has a long bottom wick which we all know telling us of a strong buying pressure knowing the fact that we are referring a high time frame.

Gold’s weekly volumes are also up in green in the last 3 weeks which suggesting fresh long entries.

The recent breakout on the important $1,800 price level might support Gold’s uptrend rally towards the psychological $2,000 mark knowing the fact that the yellow metal has always been one of the choices for a safe haven asset in the global markets’s perspective.

I am speculating traders and investors will wait for the final outcome now that Fed’s chair Powell has continue to push through for a tapering probably by the end of the year 2021. We must not forget that we are still facing on-going pandemic with its latest variant Delta in play wrecking havoc in the world’s economy. So an increase of volatility is always out there waiting.

Anyways, I will layout a trading plan for the Gold against the US dollar. Technically, a lot of resistances up above waiting starting from $1,835 which kept the yellow metal’s price at bay for consecutive 7 weeks. It also happened that it is the weekly 50 SMA acting as short term resistance. I see the weekly chart with mixed technical meters, the moving averages hinting for a correction while both the MACD and RSI is ready for a bullish divergence.

I will make a bet and will be long for the Gold. I think $1,800 will act as support next time a small correction in play. Just a simple prediction since it was also one of the small resistances that halted Gold’s price higher so a bid confirmation will be good  which will be a good entry, I keep an eye on $1,750 as stop loss which coincide’s the weekly 100 SMA. Definitely the pyschological price level $2,000 is a good take profit exit.

This trading plan would roughly give us a risk:reward score of 4.00 which I like to give a shot.

Have a great trading week ahead and stay safe.

Gold LONG – Eyeing the Re-test on $2000 Psychological Level

Aug 30 2021

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