Chart of the Week – 26th August 2022
- Gold - XAU/USD – Gold facing Resistance - needs a major push to break through the confluence zone.
Chart Analysis
Gold Chart shows after hitting the $1765 previous Pivot point met with resistance and the price is moving down now. The rejection could be temporary or could turn out to be a more substantial resistance for Gold due to several resistance indicators meeting just above the current level. The resistance cluster above is comprised of Confluence points of Fibonacci 38.20%, new Pivot now at $1760 that has moved down from $1765. So apparently, gold needs to break through the confluence zone just above the current prices, including the key resistance level at $1778 the longer-term trend Resistance Line, Fib levels and the SMA lines. At this stage all indicators are indicating at Headwinds Gold would face in the next week.
- Resistance Zone: $1808 to $1820
- Key Resistance Level: $1778
- Major Pivot Point: $1760
- Key Support Level: $1731
- Support Zone: $1710 to $1790
- 200 Day SMA – Green Line
- 50 Day SMA – Red Line
- 20 Day SMA – Blue Line
Daily Chart Directional bias - 2 Weeks
Trade Insights – XAUUSD
The chart shows viable Short Positions under the Pivot point of $1760 or current gold prices. Short positions towards the first target of $1745 Support and, then further test of Key Support Level at $1731.
Possible entry of Short Trades below the Pivot at $1765 or the current level
Potential first take profit could be at - $1745
Potential second take profit could be at - $1731
Potential Third take profit could be at $1710
Alternatively, possible Long positions if Gold bounces back up above the $1760 Pivot Point and to first test the resistance at $1770 and then the test of the resistance level at $1778.
Possible Entry for Long trades above the Pivot at $1760.
Potential first take profit could be at - $1770 Resistance
Potential second take profit could be at - $1778 Resistance
Potential third take profit could be at - $1808 Resistance Zone.