Gold rebounds from technical support. What to expect in case of an upside move?

In continuation of the analysis: Is it time for long-term investments in Gold

As expected Gold (XAU/USD) found support at a horizontal level between 23.6% and 38.2% of the Fibonacci retracement of the primary rebound after the mass market sell-off in the middle of last month. Futures continue to be quoted positively, which is another sign of increased demand.

On the weekly chart, the first major resistance will be $ 1643 – a horizontal level of weekly resistance. If this level breaks, we can expect the price to rise to the next resistance levels as on the chart.

Between $ 1667 and $ 1694 is the average level (0.5) of the 3-month high range formed between 2011 and 2013, where the next major resistance is expected. Break above the 0.5 of the range, it is very likely that we will witness a rapid rise to the upper levels of the range – between $ 1746 and $ 1772 to $ 1825, which will be the last significant horizontal resistance level before new highs. The monthly MA 13 (red line) is expected to support the price in the event of a new correction to levels below $ 1550.

Resistance levels:
$ 1,643 (weekly chart);
$ 1667-1694 (monthly / 3-months chart);
$ 1746-1772 (monthly / 3-months chart);

Support levels:
$ 1,571 (weekly chart)
$ 1,565 (monthly/ 3-months chart)
$ 1,482 (monthly 13 MA)

Sentiment: bullish

 Junior Trader Radi Djuma

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