Gold Analysis - Follow up Post for 9th Feb Analaysis
Update on Gold Analysis made on 9th Feb 2024 through the below Link::
Click here for the Feb 9th Post on Gold
Further Gold Analysis:
Afternoon Session: Following a warmer-than-expected US Inflation report Gold fell to 1 Week Low, heading towards the immediate support of 61136 followed by 60770?
Highlights:
- The XAUUSD chart currently indicates a bullish momentum, suggesting a potential upward trend in the price of gold against the US Dollar.
- The 1st support at 61136, identified as multi-swing low support, has historical significance and may attract buying interest, potentially halting downward movement.
- The 1st resistance at 62135, labeled as a pullback resistance, could act as a barrier to upward movement, triggering a temporary reversal or consolidation.
Bullish Momentum:
The chart currently exhibits a bullish momentum, suggesting a potential upward trend in the price of gold against the US Dollar. Traders and investors are observing signs that indicate a positive sentiment in the market.
1st Support Level (61136):
This level is identified as multi-swing low support, meaning it has been a point where the price has reversed and moved upwards on multiple occasions.
The historical significance of this level suggests that it has acted as a strong support area in the past, attracting buying interest.
Traders may expect a potential halt or bounce in the price if it reaches this level, as historical data indicates a tendency for buyers to enter the market here.
2nd Support Level (60769):
This support level is described as an overlap support, meaning it aligns with other technical indicators, in this case, the 161.80% Fibonacci Extension.
The confluence of different technical signals reinforces the potential significance of this level as a strong support zone.
Traders may anticipate increased buying interest in this area, as the Fibonacci Extension and overlap support provide additional validation.
1st Resistance Level (62135):
Positioned as a pullback resistance, this level may act as a barrier to upward movement.
Traders should be cautious at this level, as it could trigger a temporary reversal or consolidation in the price.
A breakout above this resistance may signal a continuation of the bullish trend.
Breaking through this resistance could signal a further strengthening of the bullish momentum.
In summary, the analysis provides a comprehensive view of potential support and resistance levels based on historical data, technical indicators, and patterns observed in the XAUUSD chart. Traders can use this information to make informed decisions about entry, exit, and risk management in the market.
Support and Resistance Levels:
