Gold Forecast | 15th August 2022
Introduction
The price of gold remains on a bullish trajectory, supported by an ascending channel and trading above the Ichimoku cloud. These factors suggest robust upward momentum in the short term. This forecast delves into the critical support and resistance levels shaping the market and the technical indicators affirming the bullish outlook.
Key Takeaways
- Bullish Trend: Gold trades within an ascending channel, reinforcing its upward momentum.
- Support at $1778: Critical 1st support aligns with 23.6% Fibonacci Retracement.
- Resistance at $1807: A breakout could pave the way for a higher target at $1840.
Technical Overview of Gold’s Bullish Momentum
Gold continues to exhibit strong upward momentum, with its price trading firmly within an ascending channel. The presence of the Ichimoku cloud below the current price further confirms the trend’s resilience.
Indicators Supporting the Bullish Trend
- Ascending Channel: This structure suggests continued upward movement as long as the price remains within its boundaries.
- Ichimoku Cloud: Acting as a dynamic support, its position below the price highlights ongoing bullish strength.
- Fibonacci Levels: Key retracement and extension levels provide well-defined support and resistance zones.
Key Levels to Monitor
Understanding these critical levels is essential for navigating market movements.
1st Support: $1778.17
This level aligns with the 23.6% Fibonacci Retracement and the lower boundary of the ascending channel. It serves as a pivotal point for traders to monitor:
- A break below $1778 could signal weakness and potentially reverse the trend.
- As long as prices stay above, the bullish trend is likely to persist.
1st Resistance: $1807.69
Currently close to the trading price, this resistance level is a crucial barrier:
- A breakout above $1807 may confirm further momentum.
- Such a move could drive the price toward the 2nd resistance level.
2nd Resistance: $1840.27
This level represents a key Fibonacci extension, acting as both a target and a potential reversal zone:
- Profit-taking is likely at this level.
- Watch for consolidation or a shift in momentum near $1840.
Trading Strategies Based on Technical Indicators
The confluence of technical signals provides actionable insights for traders.
Continuation of the Bullish Trend
- Enter long positions as the price approaches $1778, ensuring tight stop losses below the support.
- Target resistance levels of $1807 and $1840.
Managing Risk During Potential Reversals
- Monitor volume and candlestick patterns around resistance zones to anticipate profit-taking or corrections.
- If the price breaks below $1778, consider short positions, targeting deeper Fibonacci retracement levels.
Conclusion
Gold remains firmly bullish within an ascending channel, supported by critical levels and strong technical indicators. As long as the price stays above $1778, traders can expect upward momentum toward $1807 and potentially $1840. However, caution is advised for moves below support, which could signal a reversal. Stay informed with Fortune Prime Global (FPG) for accurate market insights and timely updates.
