Last Friday, markets had been in a frenzy in the lean hours of the NYSE close. The main reason was due to the Russian Ukraine conflict which is still pending in talks. With the warning issued by USA, gold frenzied to a surge of mere 30 dollars in a period of 2 hours.

Looking at the current situation, we will be assessing gold with a technical standpoint.

Gold broke the solid resistance level of 1842, which has now turned a support. This support was broken out for buys with full force and we are waiting for a retest at the level for long position. On higher time frames, we are still in a range on gold. On H4, market has formed higher highs and higher lows, hence depicting a bullish trend.

Market is clamped between a bearish wedge, which is yet uncertain given the lengths of the trendline. The resistance line still needs to be tapped at the resistance level. This is the level we are targeting our potential take profits. Whereas, the ascending trendline is still below the current price action. This trendline needs to either break or be rejected by the price action.

The golden Fibonacci retracement is below the support level and in between the two support levels. There is no solid confluence to be taken advantage of.

Both the EMA’s are bullish with a bullish death cross. Market broke out the EMA 50 and EMA 200 and is due a retest of either of the EMA’s. At the support level, we analyze the retest of the EMA 200. This will again add as a solid confirmation on our position. But the fact remains, the EMA’s are still down below and we are analyzing to take a long at the current market structure.

Both the oscillators are in a bullish region, with an over bought scenario. The oscillators are heading towards their neutralized levels. RSI is at 63 and CCI is at 155. What this means is that CCI is already near its neutralized levels at the current support level, whereas, RSI still has room to move down towards the neutralized levels. At the support level, the oscillators should be neutralized, hence providing us with an additional confirmation to continue moving up.

The Gold setup is purely based on break and retest and we need to be vary of the fact that Gold can further fall back down. We will take a loss if market breaks the support.

Russian unrest caused Gold to sky rocket

Feb 14 2022

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