Yesterday in our analysis we noted the bullish outlook for gold, you can review here.
In the early American session, gold, XAU / USD, is trading with a strong uptrend. This is confirmed by the formation of a pennant pattern in the chart, which represents a strong uptrend. The immediate support is the SMA of 21 around 1818 .
In view of the fact that gold, XAU / USD, has this bullish continuation pattern, we must watch that it trades above the SAM of 21. The upward target to reach is the 7/8 (1,843) zone of murray. This is a level of reversal, so you might consider selling below this level.
The technical reading of the eagle indicator shows that the price is reaching overbought levels in 1-hour charts. It is imminent that there will be a downward correction to 10 points of the indicator, that would mean that gold could fall to the key level of 1,800 in the short term.
Gold is consolidating before NFPs release. We don't know the outcome yet, but whatever direction it takes, we should wait to buy or sell targeting the initial point before release, this is a good proven strategy for years.
The market sentiment report for today Friday shows that 62.5% of operators are selling gold. That means that we can continue to buy with 1,843 targets in the short term.
Support And Resistance Levels For May 07 - 10, 2021
Resistance (1) 1826
Resistance (2) 1840
Resistance (3) 1849
Support (1) 1808
Support (2) 1804
Support (3) 1791
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Trading tip for Gold for May 10 - 11, 2021
Buy above 1820 (EMA 200) with take profit ate 1841 (7/8) stop loss below 1815
Sell if pullback 1.841 (7/8 of murray and zone of reversion) with take profit at 1830 and 1820 (SMA 21), stop loss above 1851.
Sell below 1812 (6/8 and SMA 21) with take profit at 1800 and 1781 (5/8), stop loss above 1817.
