gold price analysis – Momentum Shifts to Upside on Trade Through $1564.20

gold price analysis – Momentum Shifts to Upside on Trade Through $1564.20

gold price analysis – Momentum Shifts to Upside on Trade Through $1564.20

 


gold price analysis  futures closed higher on Friday for no obvious reason aside from aggressive speculative buying. Some bullish traders claim they're buying due to political, geopolitical and economic worries. However, we’re not seeing any buying within the safe-haven U.S. Treasurys and Japanese Yen

Other traders are saying the buying is being fueled by speculators placing bets that an overbought stock exchange will eventually come crashing down. Still others feel that Phase one among the U.S.-China trade deal is weak and sure to fail

gold price analysis Nonetheless, the gold market remains facing headwinds thanks to global equity markets at record levels, an improving Chinese economy and a strengthening U.S. Dollar. Gold also rallied last week despite improving U.S. economic data

Daily Swing Chart Technical Analysis

The main trend is up consistent with the daily swing chart; however, momentum is trending lower. A trade through $1536.40 will change the most trend to down. A move through $1613.30 will signal a resumption of the uptrend

gold price analysis The minor trend is down. this is often why the momentum is trending lower. The minor trend will change to abreast of a move through $1564.20. this may also shift momentum to the upside

The main range is $1453.10 to $1613.30. Its retracement zone at $1533.20 to $1514.30 is major support

The short-term range is $1613.30 to $1536.40. Its retracement zone at $1574.90 to 1583.90 is that the next potential upside target

Daily Swing Chart Technical Forecast

gold price analysis Based on Friday’s price action and therefore the close at $1560.30, the direction of the February Comex gold derivative instrument on Monday is probably going to be determined by trader reaction to the minor top at $1564.20

Bullish Scenario

Taking out $1564.20 and sustaining the move will indicate the presence of buyers. this might create the upside momentum needed to challenge the short-term 50% level at 1574.90

gold price analysis Sellers could are available on the primary test of $1574.90. However, this is often also the trigger point for an acceleration into the short-term Fibonacci level at $1583.90

Bearish Scenario

gold price analysis The inability to beat or sustain a rally over $1564.20 will signal the presence of sellers. If this move creates enough downside momentum then search for a possible retest of the most bottom at $1536.40 and therefore the main 50% level at 1533.20