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Gold analysis May 5, 2021

 


On the daily chart, we can notice a double bottom at 1676, while on the four-hour chart, we can notice the building of a strong demand area at 76.4% Fibonacci 1766 that gave gold the support it needs on more than one occasion to continue the upward trend. Currently, we can confirm the positivity of the general trend with the stability of trades above 1766, while We will not be able to confirm the negativity of the trades except by trading below the double bottom 1676, so the scenario of moving between the levels of 1800 - 1767 - 1676 appears to be the closest scenario to reality, but noting that technically gold can rely on more than one strong support area to re-rise above 1800 on its way again. To target the 2070 summit, and with the weakening of the US dollar, gold may not need much to end the year’s trading higher than 2070, provided that trades remain above 1676.

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