Gold price is trading at $1,761 level and it continues to move sideways on the H4 chart. The price tries to collect more bullish energy before it jumps higher in the short term. Technically, the minor drop was somehow expected after the last rally, so the retreat could give us another chance to catch the leg higher.
COVID-19 second wave fear and the global risk could help the gold price to resume its upwards journey in the upcoming period. The uptrend is intact, so you could still search for buying opportunities as the yellow metal could approach and reach new highs. Gold is trading higher and ignores the USD appreciation in the short term.
I've said in the previous analysis that the gold price has reached another upside target when it has touched the R2 ($1,772) level, the price has registered only a false breakout, so the minor drop was natural.
The bias is still bullish as long as the price is trading above the R1 ($1,757) level and above the median line (ML) of the orange ascending pitchfork. A false breakdown with great separation below the near-term support levels (ml, R1) will signal another bullish momentum.
A bigger drop is less likely to happen right now, but if the gold price drops and stabilizes below the R1 and below the median line (ML), we could expect a decline towards the lower median line (lml) of the orange pitchfork, near the S1 ($1,716) level.
- GOLD Trading Tips
Buy it if the Gold price makes a valid breakout above the R2 ($1,772) and if it makes another higher high or if it stabilizes above the inside sliding line (sl). The outlook is bullish as long as the price is located above the median line (ml)
The next major upside target is seen at the upper median line (uml) of the orange ascending pitchfork and at the $1,800 psychological level. A further increase could be invalidated only by a valid breakdown below the median line (ml).
