This precious metal has been on a tear recently, and I’m seeing an opportunity to catch a quick pullback!
Here are the support levels I’m watching on gold.
Gold (XAU/USD): 1-hour
I’ve got gold’s long-term bullish breakout on my radar, so I’m looking for a chance to hop in the rally.
On the hourly time frame, XAU/USD is trading above an ascending trend line that’s been holding since early this month.It looks like another test of the support zone is in the works, and the handy-dandy Fib tool shows where more gold bugs might be waiting.
The 50% level might be a good level to enter a long position since this lines up with the trend line at $1,960. A larger pullback could reach the 61.8% Fib at the $1,950 minor psychological mark.
However, the 38.2% level already seems to be attracting buyers while Stochastic is starting to pull higher from the oversold region. A bit of bullish divergence can also be seen, as the oscillator formed lower lows while the price had higher lows.
Moving averages are pointing to a continuation of the uptrend as well, with the 100 SMA safely above the 200 SMA.
If any of the Fibs hold as a floor, gold could resume the climb to the swing high at $2,010 and beyond!
This might just be the case if risk aversion extends its stay in the markets, especially while traders remain on edge about a potential financial sector collapse stemming from the recent bank runs.
How much higher do you think gold can go from here?
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