Gold Reaches the Overbought Region, Faces Rejection at $1,949

Updated:

Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700,$1,650

Gold (XAUUSD) Long-term Trend: Bearish
Gold (XAUUSD) is in a downward correction as it faces rejection at $1,949. Gold price is trading between the moving averages. It indicates that XAUUSD will be in a range-bound move above the 50-day line but below the 21-day line moving average. The market will resume an upward move if price breaks above the 21-day line moving average. The downtrend will resume if price breaks below the 50-day line moving average. Meanwhile, on March 15 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Gold will fall but reverse at level 1.272 Fibonacci extension or $1,853.

Gold Reaches the Overbought Region, Faces Rejection at $1,949
XAUUSD – Daily Chart

Daily Chart Indicators Reading:
Gold is at level 52 of the Relative Strength Index for period 14. XAUUSD has fallen but is still in the uptrend zone and capable of rising to the upside. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The price bars are between the moving averages indicating the range-bound move.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4-hour chart, the Gold is in a downtrend. After the initial decline to the low of $1,904, the market resumed a sideways move. Meanwhile, on March 16 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Gold will fall but reverse at level 1.272 Fibonacci extension or $1,851.86.

Gold Reaches the Overbought Region, Faces Rejection at $1,949
XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
XAUUSD is above the 80% range of the daily stochastic. The market has reached the overbought region. Sellers will emerge in the overbought region to push prices down. The 21-day SMA and the 50-day SMA are sloping horizontally indicating a sideways move.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price has resumed downward correction as it faces rejection at $1,949. The market will soon decline as price reaches the overbought region.

You can purchase crypto coins here. Buy LBlock

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.