Gold Resistance Is Seen Around $1780/90

29 June 2020

Gold hourly chart has been presented here to have a look at the short term wave counts and find an impulse boundary that confirm bearish reversal. The yellow metal is set to face resistance around $1780/90 levels as highlighted by fibonacci extensions here.

Until now, Gold is clearly trading into the buy zone of the support rend lines. The immediate support trend line passes through June 05 low at $1678 and June 18 low at $1717 respectively. Last week, the yellow metal had bounced off the trend line support at $1747 keeping the bullish structure intact.

Gold is seen to be trading around $1772 as we prepare this article, and could be inclined to push higher towards $1790 levels, before finding resistance again. Please note the above level is fibonacci 0.618 extension of recent rally between $1678 and $1744 respectively.

Alternately, if prices do not break above $1780 from here and continue dropping lower towards $1747 lows, it would confirm that a meaningful top is in place at $1780 and that the yellow metal is expected to remain in control of bears going forward.

Furthermore, a break below $1747 would not only be seen as constructive for bears but also break below the trend line support, entering into the sell zone. We shall be looking for price action to break below $1747 and continue to break initial support at $1717.

If the above unfolds as expected, Gold would be confirm the first step towards a major trend reversal. We would be looking to sell on rallies towards the backside of support trend line, thereafter. Overall, Gold has less room for rallying from current price ($1772).

Traders might be waiting for prices to break below the trend line support and enter into the sell zone before initiating fresh short positions against $1780/90 levels.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In