Cabana Capitals Blog Forex Broker,Market Insights GOLD: bulls are heading to $1840 level one sided rally.

GOLD: bulls are heading to $1840 level one sided rally.

GOLD:  bulls are heading to $1840 level one sided rally. post thumbnail image

General overview: Gold awaits a strong catalyst to break through the key $1800 barrier. Falling Treasury yields and DXY remains a key driver for gold’s upside. A test of rising wedge hurdle at $1802 on the 4H chart likely amid bullish RSI. The gold again hit towards the fresh month high $1798 on Wednesday. The returns on the market tumbled once again amid resurfacing concerns over the economic recovery, as the covid surge globally continues to overwhelm. However, the solid rally lost strength once again just shy of the $1800 barrier, as the latter continues to act as a critical technical level. Meanwhile, the rebound in Wall Street indices also helped limit gold’s advance. In Thursday’s Asian trading, gold bulls took a breather above $1790, as they await a strong catalyst to resume the uptrend.

Technical analysis: From the technical point of view we can say that mare fresh month key creates strong bullish side in the market. The bullish momentum again formed in the market. On the 4 hourly chart gold faces rejection in the chart for the upside again, but after level $1783 level pair again raises and meet level $1803. The upward trend formed in the market and formed bullish momentum in the market. Gold again motivate the buyers to form the buy trend in the market and make the buy position in the market. On the chart we can see the w pattern in the chart and expect to reach high of $1815. The RSI also reach level 70 formed buy territory and MACD also reach level above zero confirmed buy signals. the support level will be 1775 followed 1760 and resistance will be 1805 followed 1816.

Trade idea: Our traders will set towards the buy side around 1790 and target will be 1802-1817 and stop loss will be 1770

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