Gold (XAUUSD) Reaches Level $1,818, Faces Rejection at an Overbought Region

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

Gold (XAUUSD) Long-term Trend: Bullish
Gold’s (XAUUSD) price is above the moving averages as it faces rejection at an overbought region. Presently, the market has broken above the moving averages indicating further upward movement of prices. In retrospect, the previous downtrend has been terminated in March. According to the Fibonacci tool, the Gold price fell to the low of level $1,687 which is equivalent to 2.0 Fibonacci extension. Nonetheless, after the downtrend, the Gold price has been in a sideways trend. The market has been fluctuating between $1,680 and $1,920. Today, the Gold price is trading at $1,816 at press time. The current uptrend may face rejection at $1,920.

Weekly Chart Indicators Reading:
Gold price is above the 21-day line SMA and the 50-day line SMA indicating a possible rise of Gold. The gold price has risen to level 53 of the Relative Strength Index for period 14. XAUUSD is in the uptrend zone and above the centerline 50. The moving averages are sloping horizontally indicating the sideways trend.

Gold (XAUUSD) Medium-term bias: Bullish
On the 4 hour chart, the Gold price is in an uptrend. The price has broken above the moving averages. Meanwhile, on December 29 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that Gold will rise to level 2.0 Fibonacci extension or level $1,820.77. From the price action, the market has reached the overbought region of the market.

4-hour Chart Indicators Reading
XAUUSD is above the 80% range of the daily stochastic. It has risen to the overbought region. The Gold price is likely to fall. In other words, sellers will emerge in the overbought region of the market to push prices down. The 21-day line moving average and the 50-day line moving average are sloping upward.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is in an uptrend as it faces rejection at an overbought region. The uptrend has reached the overbought region of the market. The market has risen to l$1,817. If it faces rejection; the market will decline to the low of $1,799.


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