Relevance up to 09:00 2020-05-21 UTC–5
Gold price remains in a bullish trend. Price continues to respect and trade above short-term support Ichimoku indicators. Although technically we still observe bearish divergence signals in the weekly chart, there is no reversal signal yet.
Black line -resistance trend line
Gold price after breaking above the black resistance trend line has provided a new 2020 high and continues to hold above the tenkan-sen and kijun-sen indicators. Support by those two indicators has now risen towards $1,728 and $1,712 respectively. As long as price is above these two levels short-term trend remains bullish targeting $1,770-80 as we explained in previous posts.
Red line -bearish divergence
Green rectangle -target
Gold price is diverging on a weekly basis. This is an important warning not to get too optimistic at $1,750 and above. Yes price could reach $1,780 but the downside potential is bigger. Key reversal level is the $1,700 base and the $1,710-20 support area. Looking closely for any clues of a reversal. So far no sign. Bulls need to be cautious.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Alexandros Yfantis,
InstaForex Group © 2007-2020
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