Technical analysis on Gold for May 4, 2021
Gold price got rejected once it visited the $1,800 area again. Price has now confirmed the importance of the $1,800 level giving higher value to a potential break above this level. Traders need to keep a close eye on price now as more weakness in price could lead to a deeper pull back towards $1,740 and lower.
Green lines- bearish channel
Black line -resistance
Gold price continues to trade inside the longer-term bearish channel but short-term trend remains bullish after the double bottom at $1,677 and the bounce towards the upper channel boundary. Support is key at recent low of $1,765. Breaking below this level will most certainly bring price below the $1,755 low and closer towards the support of $1,740-20. Traders need to be cautious. A break above resistance of $1,800 will open the way for a move towards $1,825 and $1,850.
The material has been provided by InstaForex Company – www.instaforex.com