Daily Price Action

XAUUSD Double Bottom Points to $1,830


I’ve discussed the significance of $1,680 for XAUUSD since March 2nd.

It’s a confluence of support for gold based on three key factors.

  1. It’s a critical horizontal level dating back to February
  2. It is (or at least was) the bottom of a descending channel
  3. It’s the 61.8% Fibonacci of the 2020 range

Gold bounced from the $1,680 area in March, but the bullish momentum faded last week.

However, Thursday’s rebound from support looks much more convincing, at least so far.

Notice how Thursday’s rally has engulfed Wednesday’s selloff.

That’s a pretty clear indication that buyers intend to hold XAUUSD above $1,680.

While there are no guarantees, the double bottom’s measured objective is $1,830, which happens to be the 38.2% Fibonacci of the 2020 range.

Just keep in mind that $1,760 will be a key hurdle for buyers.

The $1,760 level was resistance in May of last year before flipping to support in June and early July.

It’s also the 50% retracement of the 2020 range.

So, although today’s XAUUSD rally is constructive, buyers still need to clear $1,760 to open the door to $1,830.

Only a daily close below $1,680 would negate the bullish outlook.

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Justin Bennett says

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Hany Gabr says

Sorry Justin I do not agree with you , From the way i see related markets I think the Gold bounce is just reaction of collecting profits & return to the Mean ,Also the Wednesday high due to the result of non farm employment change result which i think it is temporary effect , i believe it will go down to 1618 to make the head of potential inverse head & shoulders pattern , it will take more time before it moves up again , any way we all have to wait and see where the market is going & act accordingly as you taught us .

rmltrader says

Thanks for your analysis, Justin. I’ve been learning from you for 3 years and I’m finally starting to be profitable. I am very patient.

ali says

thanks sir.

Ngo Sy Ha says

thanks you

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