Select the account you'd like to open


Chart of the week – Potential bullish reversal for Gold


Chart of the week – Gold

Potential bullish reversal for Gold

Short to medium-term technical analysis

Time stamped: 1 May 2022 at 12:00pm SGT (click to enlarge chart)

Source: CMC Markets

  • Watch the 1,850 key medium-term pivotal support on Gold (cash) for a potential recovery to retest 1,942 intermediate resistance and a break above it opens up scope for a further up move towards 1,998/2,004 next. On the other hand, a break with a daily close below 1,850 put the bulls on hold for an extension of the corrective decline within its longer-term major uptrend phase towards the next support at 1,780 (swing low areas of 7 January/28 January 2022).
  • The price actions of Gold (cash) have staged a decline of -6.3% in the last two weeks from 18 April 2022 high of 1,998 to print an intraday low of 1,872 on 28 April 2022.
  • Interestingly, the recent bout of weakness has led its price actions to drift down close to a significant inflection/support level zone of 1,870/1,850 which confluences with several key technical elements.
  • The significant support level zone of 1,870/1,850 is defined by the ascending trendline from 9 August 2021 “flash crash” low, former swing high of 26 January 2022, 100-day moving average, 61.8% Fibonacci retracement of the up move from 16 December 2021 low to 9 March 2022 high and the 0.764 Fibonacci extension of the recent decline from 9 March 2022 high to 17 March 2022 low projected from 18 April 2022 high.
  • The 4-hour RSI oscillator has flashed a bullish divergence signal at its oversold region which suggests that the downside momentum of the recent decline from 18 April 2022 high has abated, and it increases the odds of a short to medium-term recovery process in price actions.


Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.

Sign up for market update emails