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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Price action in Gold suggests the yellow metal has been building a base since Mar 8. If correct, this signals a potential reversal and key nearby resistance levels appear exposed. The key technical factors to note are:
- The low prints on Mar 8 and Mar 31 highlight a potential double bottom reversal. The midpoint at $1755.5, Mar 18 high has been probed and a clear break would confirm the reversal pattern. Near-term resistance is at $1758.8, Apr 8 high. A break of this level would confirm a breach of the neckline.
- The recovery from recent lows means Gold has found support at key chart points.
- $1689.9 marks the 61.8% retracement of the rally between Mar - Aug 2020.
- The significance of the recovery from this retracement is highlighted by a bear channel base drawn off the Aug 7, 2020 high. On Mar 8, the channel base was probed but Gold quickly reversed direction from that day's low. The channel base intersected at $1689.9 on Mar 8 - the same value as the 61.8% retracement.
- A confirmed double bottom, a break of $1758.8 and as a result, a move above the 50-day EMA would confirm a reversal and pave the way for strength towards $1800.0. Note that further out, this could also suggest the possible start of a stronger recovery towards the bear channel top at $1882.3 over the medium-term.
- Sub $1676.9 levels, Mar 8 low would negate a reversal prospect and instead highlight a stronger bearish risk.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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