Chart of the week – Gold (cash)
Gold (cash) impulsive up move sequence remains intact
Short-term technical analysisclick to enlarge chart
Time stamped: 8 May 2021 at 2:30 pm SGT
- In our previous “Chart of the week” published on the 8 March Week Ahead Newsletter, Gold (cash) has rallied and hit the 1,755/65 resistance/target as expected. From its 31 March low of 1677, Gold has shaped an up move of +9.9% to print a high of 1,843 on last Friday, 7 May.
- Positive elements remain intact; the 4-hour Relative Strength Index (RSI) has not flashed any bearish divergence signal at its overbought zone. Secondly, its price action has shaped a strong up move of +5% after a retest on the 1,755 former neckline resistance of the medium-term “Double Bottom” bullish reversal configuration on 29 April.
- 1,790 key short-term pivotal support (also the ascending trendline from 31 March low) for a further potential push up towards the 1,870 intermediate resistance before risk of minor pull-back/consolidation sets in. Thereafter, the next resistance to watch will be the significant major zone of 1,940/1,965 where the bulls have been denied twice on 9 November 2020 and 6 January 2021 that led to a tumble of -14% to print the recent March low of 1,677. A weekly close above 1,965 is likely to signal the start of potential major uptrend phase.
- On the other hand, an hourly close below 1,790 negates the short-term bullish tone for a retest on the key medium-term support zone of 1,765/55.