- May 4, 2023
- Posted by: Tradingshot Articles
- Category: Commodities
Gold (XAUUSD) hit the 2075 Resistance that was formed on the August 07 2020 market Top and was the level that made a new aggressive rejection on the March 08 2022 High, in the midst of the Russia – Ukraine war.
So far it has reacted with a rejection in the early trading sessions. They key in our view is the weekly (1W) candle closing. As long as it closes below the 2075 Resistance, we will short targeting the 1D MA50 (red trend-line) on the 0.786 Fibonacci level at 1975. If the 1W candle closes above the 2075 Resistance, we will target 2190, assuming a similar rise range of +21.26% as the January 30 peak.
Keep an eye on the 1W RSI, which could be an early indicator. It has been trading under a Lower Highs trend-line since August 19 2019. Today it broke above it and turned overbought at 70.00 as it did recently on the January 2023 High. This may be an indication of a long-term break-out but at the same time getting overbought on 1W implying that a relief pull-back (that usually touches the 1D MA50 at least) may be in order.