Published: June 21, 2019 8:15 am est
by, Hitesh Devatwal, Ritika Saini and Sahil Khan
Contributor’s, NewsmovesMarketsForex
Since the starting of the June 2019 gold is making successively higher highs and higher lows and bulls even breached a short term downtrend line also and heading towards north side with strong bullish momentum. In the last week gold has arrived at key resistance level i.e. $1348 level which was the high of February 2019 high. The first phase of Bull Run has been completed now it’s starting of the second phase where bulls need to clear so many acid tests between $1350 to $1400 ranges.
The coming week’s are very crucial for yellow metal as we can see on the chart that $1357, $1365, $1375 and $1396 is the high of preceding year which can’t be ignored at the moment. Presently short term to intermediate term trend is up so in an uptrend market buy on dips will be profitable strategy, and to have a strong bull run dollar’s weakness is also required which is almost there.
The way bulls are reacting it seems like they are approaching the $1400 level in near term and every dip should be convert as buying opportunity. From technical prospective we can observe that gold is forming in rounding bottom pattern where bulls are driving the car and approaching the $1378 level initially which is a key resistance level or high of February 2019 high. Well the way bulls are reacting it seems like they are trying to mark a new high of this year 2019.
Bulls are still sustaining below the $1350 level which is point of concern, if bulls really want to hit the new high of this year then they have to clear the $1350 level aggressively with strong bullish momentum. If gold trades and sustains above $1350 level then we will see further bullish sentiments and it will become stronger. To have a real bullishness in the yellow metal, bulls need to trade and sustains above $1350 level on daily basis, which will open the way towards the $1380 and $1400 level.
Last week after a strong bullish sentiments we have seen clear dip today at the time of writing , gold is hovering at 1328 level which can be taken as further buying opportunity.
A bullish crossover on the MACD indicator is a recent development on the chart which is providing us bullish signal and providing strength to the bulls. RSI has entered into overbought territory due to which some correction can’t be ruled out, but all these corrections should be considered as fresh buying opportunity as long as $1300 level remains intact. The $1340 level is key resistance level followed by $1390 whereas $1300 is key support level followed by $1280 level.
Odds are in favor of bulls and daily to weekly bias remains bullish on the yellow metal so traders and investors are advised to go long at in the range of $1325-$1322 for the target of $1370 and $1390 and with the tight stop loss of below $1300 level.
Daily chart XAU/USD with MACD & RSI June 11, 2019