Type:
Bearish Continuation
Key Levels:
Resistance: 51102
Pivot: 50844
Support: 50563
Preferred Case:
With price breaking the ascending channel and MACD having a bearish momentum, we expect prices to break through the ichimoku cloud . Also, we have a bearish bias that price will drop to our 1st support at 50563 in line with the 161.8% fibonacci extension , 38.2% fibonacci retracement and horizontal overlap support from our pivot at 50844 in line with the horizontal pullback resistance.
Alternative Scenario:
Alternatively, price may break pivot structure and head for 1st resistance at 51102 in line with the pullback resistance.
Fundamentals:
Due to increasing inflation rates in the US,UK and other developed economies, we have a bullish view on the precious metal.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.