Last whole week was frenzied with the tensions between Russia and Ukraine. We have to keep in mind the fundamental standpoint looming around at this point in time. As the tensions get worse, gold is ready to break all barriers upwards.

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

Gold broke the solid resistance level of 1876, 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. Other than that, Gold is in a range right now with more prospects of it breaking upwards.

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. We assess that the market might break the resistance trendline and retest it.

There is no golden retracement factor in the current gold setup. We need a clear impulse move up in order to draw the fibonacci's.

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.

Be aware of the updates on the Russian Ukraine tensions. Any news from this fundamental standpoint can cause a havoc in the markets.

Looming decision of Russia-Ukraine hangs gold

Feb 19 2022

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