Technical Update - Gold breaks key resistance level but can it go higher? Silver struggling to break resistance. Will bear trend resume?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Gold spot XAUUSD closed yesterday above key resistance at 1,780. However, 55 SMA and the falling upper trend line, parallel offset from the lower falling trendline, seems to provide some resistance. It can be a bit of a struggle for buyers to push XAUUSD higher.
However, if they succeed in pushing gold prices above the falling trend line a move to around the 0.382 retracement of the falling channel at around 1,830 is likely. Around that level also the 200 SMA will act as a resistance combined with the declining 100 SMA.
Strong resistance at around 1,875
If buyers cannot hold up Gold and the price slips back below 1,754 bear trend resumes for a new test of 1,680.
Silver Spot XAGUSD has now been rejected a couple of times at the 20.45 resistance level. If XAGUSD slips back below 19.75 bear trend is likely to resume.
A close above the resistance level AND above 55 SMA a bullish move to around 21.50-22.00 is likely. Strong resistance at around 22.50
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