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

Gold (XAU/USD) Maintaining a Bullish Bias

Gold has been bullish since December. But as the daily chart shows, the rally turned choppy as we got into the second half of February. It has since remained choppy and retreated from above 1280 to about 1205 at the end of March. 

XAU/USD Daily Chart 4/7

(click to enlarge)

Note that the pullback so far hasn't even made 38.2% retracement. Furthermore, price held above the 50-day simple moving average (SMA), and is thus still above the 50-, 100-, and 200-day SMAs. The RSI is holding above 40, which shows maintenance of the prevailing bullish momentum. 

The bearish correction channel in March is broken. as price broke above the falling resistance during the 4/6 (Monday) session.

XAU/USD 4H Chart 4/7

(click to enlarge)

To further confirm the bullish continuation scenario, we want to see price break above 1240 and the RSI tag 70. Then, if there are any dips, we should see price hold above 1225. A break below 1220 would cause doubt about the bullish outlook, which has the 1280 high and then the 1300 psychological level in sight. The 2015 high at 1307.50 could also be in sight in this bullish continuation scenario for the short to medium-term (couple of weeks to a month or so).