(MENAFN- DailyFX) Gold Technical Outlook Weekly technicals on Gold (XAU/USD) Key resistance in view- constructive while above slope support Check out our 3Q projections in our Join Michael for Live Weekly Strategy Webinars on prices rallied for the third consecutive week with the precious metal up more than 0.85% to trade at 1227 ahead of the New York close on Friday. Here are the updated targets and invalidation levels that matter on the XAU/USD weekly chart. for an in-depth breakdown of this setup and more.
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Gold Weekly Price Chart Technical Outlook: In our last , we highlighted a price breakout above a critical resistance confluence at 1210/14 with the, 'first major weekly resistance zone on the topside eyed at 1235/38- a region defined by the 38.2% of the yearly range, the 100% extension of the advance off the August low, the December swing low and the long 200-week moving average.
Gold registered a high this week at 1233 before turning lower note that weekly momentum is attempting to close above the 40-threshold for the first time since the June breakdown and bodes well for the bulls. Weekly support rests at 1210 with broader bullish invalidation steady at the yearly low-week close at 1184.
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Bottom line: Our outlook remains unchanged from last week 'Gold prices have cleared a technical resistance confluence / the monthly high and keeps the outlook weighted to the topside. That said, prices failed just ahead of key resistance this week and leaves the immediate advance vulnerable near-term while below 1235/38(could see a tag of this level first). From a trading standpoint, looking for a pullback to offer more favorable entries while above the median-line with a topside breach targeting the upper 50-line (currently ~1250s) and the 50% retracement of the yearly range at 1263. Trading short-term? Review this week's for a complete technical breakdown of the intraday trading levels.
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Gold Trader Sentiment A summary of shows traders are net-long Gold - the ratio stands at +4.19 (80.7% of traders are long) bearishreading Long positions are1.2% lower than yesterday and 2.1% higher from last week Short positions are 5.8% higher than yesterday and 9.7% higher from last week We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week and therecent changes in sentiment warn that the current Gold price trend may soon reverse higher despite the fact traders remain net-long. See how shifts in Gold retail positioning are impacting trend-
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- Written by , Currency Strategist with DailyFX
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