XAU/USD – Consolidating above the key support, Seasonality in gold Weighing on the prices.

Here are today’s directional views from our market research desk! These can be starting points for your own research to identify opportunities that suit your trading charts and trading style. Like what you see? Feel free to forward this to a friend!

Please note that the analysis presented in the charts below should not be considered investment or trading advice. They are for educational purposes only and you should consider seeking advice from an independent financial advisor.

Chart of the Week – 6th September 2022

  • Gold - XAU/USD – Consolidating above the key support, Seasonality in gold Weighing on the prices.
XAU/USD daily chart

Chart Analysis:

Based on the data gold has experienced a very bearish September month over the past 5 years and faced an average loss of -2.89% during this month. If seasonality must be taken into consideration, then August was also a very bearish month for Gold, and we could see some drop in Gold prices this month too. The chart shows that prices are probably consolidating above the Key Support Level at $1710.  After finding resistance at under $1728 Major Pivot Point on the chart, gold has retrieved back sharply today and now sitting at soft support at 23.60% Fibonacci around $1717. Seems gold has already been through the reversal that appears to be a fake-out and Gold could enter a Selloff from under the Key support level. The cross of 20 Day SMA Blue line and 50 Day SMA red line is happening again just after crossing on the 24th of August. The Cross this time on could mean that gold can drop back towards the support and then jump back to test new resistances on the chart.

Please check the Chart Trading Insights below -

  • Resistance Zone: $1780 to $1800
  • Key Resistance Level: $1760
  • Major Pivot Point: $1728
  • Key Support Level: $1710
  • Support Zone: $1700 to $1680
  • 200 Day SMA – Green Line
  • 50 Day SMA – Red Line
  • 20 Day SMA – Blue Line

Daily Chart Directional bias - 2 Weeks 

Trade InsightsXAUUSD – Chart shows viable Short Positions under the Pivot point $1728. Possible short positions towards the first target of $1710 Key Support and, then further test of Key Support Level at $1700 to 1680.

Possible entry of Short Trades below the Pivot at $1728 or current level

Potential First take profit could be at - $1710

Potential Second take profit could be at - $1700

Potential Third take profit could be at $1680

Alternatively, possible Long positions if Gold bounces back up above the $1728 Pivot Point and to first test the resistance at $1760 and then the test of the resistance Zone between $1780 to $1800.

Possible Entry for Long trades above the Pivot at $1728.

Potential First take profit could be at - $1760 Resistance

Potential Second take profit could be at - $1780 Resistance

Potential Third take profit could be at - $1800 Resistance Zone.

It is important to understand that the analysis is intended for educational purposes only. Traders are encouraged to use their own judgment and analysis when making trading decisions.


1. Identify the Balance Point on the chart – The Balance Point is a level on the chart that represents an equilibrium point between supply and demand. It can serve as a potential entry point for a trade. It’s important for the trader to determine whether the current price is above or below the Balance Point before making any trading decisions.

2.
Wait for the price to approach potential profit levels – After entering a trade, it may be helpful to wait for the price to approach potential profit levels on the chart. These levels can be identified as areas where price reversals have occurred in the past. When the price approaches a potential profit level, it may be time to consider initiating further trades to test the next level of take profit limits.

3. Monitor the trade as the price hovers around the Balance Point – While the price is hovering around the Balance Point, it’s important to monitor the trade and make adjustments as necessary to ensure that it is still in line with market conditions. If market conditions change, it may be best to exit the trade.

4. Determine the market direction – Once a clear market direction has been established, the trader can set the trade with stop loss and take profit limits as they appear on the chart. It may also be helpful to consider using trailing stops to lock in profits and minimize potential losses. To determine the market direction, the trader may use technical analysis and other market indicators.

5. It’s important to remember that technical indicators, including the RSI, are not foolproof and can sometimes provide false signals. Therefore, it’s important to exercise caution when making trading decisions based solely on technical indicators. To make informed trading decisions, it’s recommended to use technical indicators in conjunction with other indicators and analysis

Disclaimer: The information provided does not constitute, in any way, a solicitation or inducement to buy or sell securities and similar products. Comments and analysis reflect the views of RockGlobal at any given time and are subject to change at any time. Moreover, they cannot constitute a commitment or guarantee on the part of RockGlobal. The recipient acknowledges and agrees that by their very nature any investment in a financial instrument is of a random nature and therefore any such investment constitutes a risky investment for which the recipient is solely responsible. It is specified that the past performance of a financial product does not prejudge in any way their future performance. The foreign exchange market and financial derivatives such as futures, CFDs (Contracts for Difference), warrants, turbos or certificates involve a high degree of risk. They require a good level of financial knowledge and experience. RockGlobal recommends the consultation of a financial professional who would have a perfect knowledge of the financial and patrimonial situation of the recipient of this message and would be able to verify that the financial products mentioned are adapted to the said situation and the financial objectives pursued. RockGlobal recommends reading the “Product Disclosure Statement” section of website for any financial product mentioned.

Any questions? You can call us on 09 281 2012 or email us at info@rockfortmarkets.com any time to help you with your trading requirements.