Technical Analysis: Bullish flag on weekly chart favors gold buy
Although gold prices paid a little heed to the Brexit deal announcement and the US stimulus news, bullish flag formation on the weekly play as well as the metal’s sustained trading above 50-SMA keeps the buyers hopeful. That said, the latest consolidation of a bull-run from August 2018 needs to stay beyond the pattern support near $1738. Though, a pullback to the 50-SMA level of $1780 can entertain short-term sellers. Also acting as the strong support are upward sloping trend line from May 2019 and August 2018, respectively around $1620 and $1510. In a case where the bullion breaks the 28-month-old support line around $1510, bears might not hesitate to challenge the early 2019 peak surrounding $1346.
On the contrary, fresh buying will wait for a clear break above the stated flag’s upper line, at $1925 now. Following that, November high near $1965 and the $2000 round-figure may offer an intermediate halt before challenging the 2020 landmark of $2075. It should, however, be noted that the uptrend past-$2075 will aim for the theoretical target of bullish flag confirmation, closer to $3000. Overall, the gold buyers have an upper hand while heading into 2021. However, expected receding of the coronavirus (COVID-19) fears and solutions of the major problems, namely Brexit, US stimulus, may offer initial pullback to the yellow metal.
On the contrary, fresh buying will wait for a clear break above the stated flag’s upper line, at $1925 now. Following that, November high near $1965 and the $2000 round-figure may offer an intermediate halt before challenging the 2020 landmark of $2075. It should, however, be noted that the uptrend past-$2075 will aim for the theoretical target of bullish flag confirmation, closer to $3000. Overall, the gold buyers have an upper hand while heading into 2021. However, expected receding of the coronavirus (COVID-19) fears and solutions of the major problems, namely Brexit, US stimulus, may offer initial pullback to the yellow metal.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.