Gold has reached a major supply/resistance level at 1970. This level has been reached on the Friday of NFP. This was a long awaited target for many bullish traders on gold. From here onwards, we do anticipate a 200 move correction or retracement on Gold. The structure is still really bullish but on the weekly, we have tapped a strong resistance which needs a solid correction. This retracement might push down towards the support level at 1950.

The golden retracement area is aligned with the resistance level. Given the level is on the daily/weekly timeframe, there is a strong anticipation for a potential reversal towards the support side.

The gold has formed a bearish wedge. If the ascending support trendline is broken out for sells, then we will have a confirmation for the continuation towards the downside. If not, we might see a rejection at the trendline. This trendline rejection would be our potential profit target.

The EMA’s are in a bullish death cross with bullish breakout buys on both the EMA’s. The EMA’s await retest at the support level. The retest would be our profit target.

RSI and CCI, both are in an over bought region. This over bought region needs to be neutralized. Also, we see a bearish divergence being formed at the level along with the price action. This divergence formed at the retracement level with the resistance is a very good solid trade we should take risk at.

Daily golden retracement area on Gold

Mar 06 2022

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