Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Yesterday, gold prices maintained their upward trajectory, aligning with the anticipated positive outlook. The precious metal touched the first target at $2027 and surged to reach a peak of $2031 during the early trading session today.
Technical Analysis Perspective
Analyzing the 240-minute time frame chart reveals that gold successfully retained the previously breached resistance level, effectively transforming it into a significant support level. This conversion occurred at the price of the 2016 Fibonacci retracement level of 38.20%. Additionally, the presence of the 50-day simple moving average is providing further encouragement for continued price appreciation.
Forward Projections
Given the prevailing technical indicators, the upward trend remains the preferred scenario for the day. The next targets for gold are identified at $2035 and $2041, respectively. A breakthrough above $2041 would extend the gains, potentially leading the price towards $2051. It’s worth noting that the primary target for the current upward wave is situated around $2065.
Potential Downside Factors
However, failure to sustain positive stability above the support level at $2016 could exert initial downward pressure on the price. In this scenario, targets for correction are identified at $2004 and $2000.
Market Caution
Investors should exercise caution today, especially with the release of high-impact economic data from the American economy, particularly the results of the Federal Reserve Committee meeting. Such events may trigger high fluctuations in prices, warranting careful monitoring and decision-making.
Risk Assessment
It’s essential to note that the Stochastic indicator is showing signs of attempting to negate negative signals. Nonetheless, market participants should be aware of the high-risk environment, particularly amidst ongoing geopolitical tensions, which may contribute to heightened price volatility.
Conclusion
In summary, gold prices continue to exhibit an upward trend, supported by favorable technical factors. However, market participants should remain vigilant and consider the potential impact of economic data releases and geopolitical developments on price movements.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart
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