In the American pre-market, Gold is trading near the key level of 1,727 where weekly support and the bearish channel line converges. The price is likely to fall to this area. If it turns out to be strong, gold could make a technical bounce, giving us a good opportunity to buy.
Last week, gold was trading within a technical pattern of a symmetrical triangle. In today's European session, it managed to break sharply, being weakened by the strength of the US dollar and by the rise in the yields of Treasury bonds. The 10-year benchmark rate is at 1.49%, after reaching 1.50% on Monday for the first time since June.
The outlook for gold in the short term is still bearish. In the next few hours, we expect a technical correction and a rebound to the 4/8 Murray level located at 1,750 where the SMA of 21 is located, putting pressure on the precious metal. If gold fails to consolidate above this psychological level, it will be a good opportunity to sell.
The EMA of 200 is located at 1,781. As long as gold remains below this level, any attempt of a technical bounce to to break this moving average without success will be a good opportunity to sell. We believe that gold will remain below this 1,781 level for a few weeks as investors are anticipating any moves from the Federal Reserve towards tightening monetary policy.
Therefore, in the short term, a technical rebound is expected at 1,728, there will be a good opportunity to buy. If the downward pressure prevails and gold consolidates below 1,722, we must avoid buying, but wait until the level 3 / 8 of murray located at 1,718. If a consolidation happens, it will be a good point to buy with the targets at the SMA of 21 and 4/8 of murray around 1,750.
The market sentiment report is showing 74.19% of operators who are buying gold. This is a very negative sign, so any technical rebound will be a good opportunity to continue selling with medium-term targets until levels between 1,700 and 1,680.
Support and Resistance Levels for September 28 - 29, 2021
Resistance (3) 1,751
Resistance (2) 1,742
Resistance (1) 1,735
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Support (1) 1,729
Support (2) 1,718
Support (3) 1,708
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Trading tip for GOLD for September 28 - 29, 2021
Buy if gold makes a rebound from 1,728 (strong support) with take profit at 1,738 and 1,750 (4/8), stop loss below 1,722.
Sell if gold makes a pullback to 1,750 (4/8) with take profit at 1,735 and 1,718 (3/8), stop loss above 1,757.
