Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

Gold - Will Broken Triangle Hold as a Price Bottom?

Technical update:

- The 1H gold chart shows a market that is shifting in direction.
- In March, xau/usd was sliding and found support at the end of the month around 1277. 
- Then, it was trading in a triangle.
- Last week, the market ended with a push above the triangle and above the 1300 handle. 
- This represents a change in direction towards the bullish mode. 

(xau/usd 1H chart, 4/7)

Cluster of support:

1) Around 1290, there is a cluster of factors to consider as support. It is the middle of the triangle, and if the market is indeed bullish, then it should hold above 1285-90 area. This would represent a respect for a price bottom, strengthening the bullish case.
2) The 200-100-50 hour SMAs are around 1290 and can provide intra-day traders with visual support.
3) There is a support/resistance pivot area around 1290.
4) There is rising trendline developing around 1290 if price gets there within the next session.

Upside risk:
Will gold put in a price bottom from last week's price action? If so, we can be looking for a retest of 1317, then possibly up to the 1342 pivot within the next 2 weeks.