XAU and XAG charts look bullish
Gold / Silver Price Technical Outlook
- Gold maintained support yesterday, looks set to trade higher soon
- Money stays within a bullish channel
Gold and Silver Price Analysis: XAU and XAG Charts Look Bullish
Gold yesterday marked and canceled support around 1764, a level in play since May of last year. It acted like a resistance back then, but has since become a source of support, with some kind of bottoming out in November and February.
Yesterday’s reversal from that low against the backdrop of a late March uptrend keeps the rise intact even though the net channel was broken on the 4-hour chart. The mere fact that a chain breaks does not necessarily signal a change in trend until the break is accompanied by strong momentum.
We can see a bit of a bullish flag developing on the 4 hour chart, but while we don’t see some neat pattern shape, as long as yesterday’s low at 1762 holds, the outlook looks positive. The first resistance level to watch is the recent 1797 high, followed by the 1816 high, a short term high from February.
The larger short-term target is the August trendline (~ 1840s) and the 200-day moving average to 1854. These two thresholds could intersect to create an influential confluence point. We’ll have to wait and see, of course.
Gold daily chart (1764 support)
Gold 4 hour chart (bullish even if out of channel)
Silver looks solid within the confines of a neat chain dating back to late March. The 4 hour chart has a clean set of lines to watch out for. The lower parallel is seen as support on the weakness with yesterday’s low at 25.81 seen as the ‘line in the sand’.
A break above 26.64 is needed to move things forward. Beyond this point there is no visible resistance until a swing higher from February within 28:30.
Silver 4 hour chart (channel heading towards breakout)
Resources for Forex Traders
Whether you are a beginner or an experienced trader, we have several resources available to help you; tracking indicator sentiment of the trader, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and especially for those who are new to forex.
— Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX