Gold price poised to challenge $1900 this week? Bulls target a breakout above this resistance
In the article, Sengezer wrote that from the daily chart, the Relative Strength Index (RSI) continues to remain above 70, indicating that gold is still technically overbought and may correct before the next wave of upward movement. On the upside, Sengezer pointed out that the short-term resistance for gold prices seems to have formed at $1890 per ounce (May 19 high). If this resistance is broken, the price is expected to test the psychological level of $1900 per ounce. Sengezer added that on the downside, the first support for gold prices is at $1850 per ounce, which is also the 61.8% Fibonacci retracement level of the January-March downward trend. Further support is at $1840 per ounce. Sengezer stated that as long as the $1840 per ounce level is held, gold buyers may see this as an opportunity to increase long positions. Once the $1840 per ounce support is broken, the price is expected to fall to the next support level of $1820 per ounce (50% Fibonacci retracement level).
Time:
2021-05-24 09:24
Early Monday morning (May 24th) in the Asian market, spot gold prices rose slightly, trading near $1883 per ounce. FXStreet analyst Eren Sengezer wrote an article predicting and analyzing the price trend of gold this week.
In the article, Sengezer wrote that from the daily chart, the Relative Strength Index (RSI) continues to remain above 70, indicating that gold is still technically overbought and may correct before the next wave of upward movement.
On the upside, Sengezer pointed out that the short-term resistance for gold prices seems to have formed at $1890 per ounce (May 19th high). If this resistance is broken, the price is expected to rise towards the psychological level of $1900 per ounce.
He stated that if the daily closing price of gold is above $1900 per ounce, this may open the door for a further rise towards the $1930 per ounce resistance level.
Sengezer added that on the downside, the first support level for gold is at $1850 per ounce, which is also the 61.8% Fibonacci retracement level of the January-March downward trend. Further support is at $1840 per ounce.
Sengezer stated that as long as the $1840 per ounce level holds, gold buyers may see this as an opportunity to increase long positions. Once the $1840 per ounce support level is broken, the price is expected to fall to the next support level of $1820 per ounce (50% Fibonacci retracement level).
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