The support level of $1,680 may hold the price
Gold Weekly Price Analysis – March 06
The support level of $1,680 may hold as the market closed with Doji candle pattern, this may increase the price towards the resistance levels of $1,741 and $1,789, and $1,818. In case the bears prevail, the support levels of $1,643, $1,591 may be the targeted levels if the $1,680 level give way.
XAUUSD Market
Key levels:
Resistance levels: $1,741, $1,789, $1,818
Support levels: $1,680, $1,643, $1,591
XAUUSD Long-term Trend: Bearish
Gold is bearish on the long-term outlook. The bears indeed defended the resistance level of $1,789, sellers gained more momentum and the price was pushed down and breaks down the former support level of $1,741. The price pulled back after the breakout. The bears rejected the retracement. Strong massive bearish candles emerged and the bearish momentum decreases the price to reach the support level of $1,680. The market closed at the just mentioned support level.
The sellers’ momentum is increasing and it has push the price to penetrate the two EMAs downside, trading below the 9 periods EMA and 21 periods EMA. The two EMAs are well separated which indicates that the bearish momentum is strong in the Gold market. The support level of $1,680 may hold as the market closed with Doji candle pattern, this may increase the price towards the resistance levels of $1,741 and $1,789, and $1,818. In case the bears prevail, the support levels of $1,643, $1,591 may be the targeted levels if the $1,680 level give way.
XAUUSD Medium-term Trend: Bearish
Gold is bearish in the 4-hour chart. The bearish momentum increases steadily after the bearish breakout that took place on 21 February by penetrating the former support level of $1,741 with a strong bearish candle. The price dropped towards the south reaching out to the support level at $1,680 price level.
Gold is trading below the 21 periods EMA and 9 periods EMA which connotes bearish trend. The Relative Strength Index period 14 is above 25 levels with the signal lines pointing upside to indicate a buy signal.
