Type:
Bullish Rise
Key Levels:
Resistance: 1891.47
Pivot: 1838.042
Support: 1829.137
Preferred Case:
On the H4, with price moving in the ascending trendline and entering the bullish pressure area on the MACD indicator, we have a bullish bias that price will rise from the pivot at 1838.042 at the swing low to the 1st resistance at 1891.47 in line with the 78.6% fibonacci projection and 50% fibonacci retracement at the swing high.
Alternative Scenario:
Alternatively, price may reverse off the pivot and drop to the 1st support at 1829.137 in line with the 100% fibonacci projection.
Fundamentals:
The recent sideways price action on gold supports the notion of a balance between expectations of rate increases by hawkish central banks vs the inflation rate.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.