Technical analysis update: XAUUSD (4th October 2021)

Inverted head and shoulders pattern we pointed out in the previous idea failed to be confirmed by breakout above the neckline. Thus, gold continues to be stuck between 1750 USD and 1835 USD pricetag as we correctly predicted over the summer. Trend remains neutral. But despite that we remain bullish on XAUUSD and we expect eventual resumption of uptrend. Unprecedented money printing, persisting inflation and inabillity of central banks to raise interest rates are supportive factors for higher price of gold. Our short-term price target is 1850 USD. Our medium-term price target is 1875 USD and our long-term price target is 1900 USD. Though, we are even more bullish than that and over next 12 months we expect gold to reach all time high.

Previous idea with inverted head and shoulders pattern:

Neckline failed to be penetrated and pattern became invalid as right shoulder is taking too long to form. Despite that resistance level that coincided with neckline continues to maintain its importance.

Technical analysis - daily timeframe
Trend continues to be neutral which is reflected in low value of ADX. RSI has bullish structure but MACD and Stochastic are neutral. DM+ and DM- are also neutral. We expect resumption of uptrend once resistance at 1835 USD was taken out.

Support and resistance
Short-term resistance sits at 1835 USD while short-term support sits at 1750 USD. Another important resistance sits at 1916 USD and then at 1965 USD. Major resistance lies at all time high of 2075 USD per ounce. Major support level appears at 1676 USD.

Immediate support/resistance can be drawn by line connecting high from 1st June 2021 and 3rd September 2021 which is displayed below:

Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.

Dagangan ditutup: sasaran tercapai