Type:
Bullish Continuation
Key Levels:
Resistance: 1851.1
Pivot: 1833.0
Support: 1824.8
Preferred Case:
Prices are on bullish momentum and abiding to our ascending trendline support. We see the potential for further bullish continuation from our Pivot at 1833.0 in line with 78.6% Fibonacci retracement and 78.6% Fibonacci extension towards our 1st resistance at 1851.8 in line with 100% Fibonacci retracement and 100% Fibonacci extension. RSI are portraying bullish momentum and prices trading above our ichimoku cloud support, backing our bullish bias.
Alternative Scenario:
If a pullback occurs, prices can potentially dip towards our 1st support at 1824.8 in line with 23.6% Fibonacci retracement.
Fundamentals:
In coherence to what we see in Technicals, the overall rally on gold continues as the Russo-Ukrainian crisis deepens. With no clear indication of collaborative efforts, market sentiments are mixed, resulting in a weakened bullish view towards gold.As market awaits the core data releases from US tonight (CPI, Core CPI m/m and unemployment claims), we would expect slight pullback from the commodity as the markets consolidate its recent gains. A drop in the US consumer price index (expected 0.4%, previous 0.5%) would reduce pressure on the rate-hike front. Alternatively, a rise would boost its inflation-hedge status.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.