Gold, Silver at the time of the resistance decision
Gold Price Technical Prediction: Weekly XAU/USD Trading Levels
- gold priceupdated trading levels – weekly technical chart
- XAU/USD Rally from trend support marks week four – now testing downtrend resistance
- Silver rally tests key downtrend resistance – August opening range in focus
- Start with this free one How to Trade Gold – Beginner’s Guides
gold prices have rallied more than 7.5% off yearly lows, with XAU/USD attempting to post a fourth straight weekly gain. The bounce off downtrend support is now testing downtrend resistance and we are looking for a pivot from this zone for guidance in the coming days. Similarly, silver is testing a key resistance zone and battle lines are being drawn early in the week. These are the updated targets and invalidation levels used for the XAU/USD and XAG/USD weekly technical price charts.
Check my latest Weekly strategy webinarfor a detailed breakdown of these gold tech setup and more.
Gold Price Chart – XAU/USD Weekly
Chart Created By Michael ButrosTechnical Strategist; Gold on trading view
Remarks: in my last gold weekly Priceoutlook We noted that XAU/USD has “recovered from downtrend support and we are looking for a reaction/possible reversal towards yearly downtrend resistance…”. Resistance and we’re looking for a reaction up here.
key rightResistance remains stable 1818/28– a region defined by the 100% extension of annual decline, which is 61.8% Fibonacci Retracement of the 2020 rally and 52-week moving average. A break/weekly close above this level is required to indicate that a more significant trend reversal towards the March lows/2021 top is underway 1895-1903. Initially weekly support is 2018 / 2019 trendline (currently ~1750s) supported by a critical threshold2021 & 2022 bottom week closes /61.8% retracement of July rally 1727/29. A breakk / weekly close below would be needed to threaten a resumption of the yearly downtrend back in direction 1671/82.
bottom line: Gold’s bounce off downtrend support is now testing downtrend resistance and awaits a reaction/price reversal up here in the coming days. From a trading perspective, a good zone to reduce parts of long exposures / increase protective stops – losses should be capped at 1727 when the price actually rises above the 52-week moving average with a break/close on this stretch, which must indicate a clearer low is present for gold. Check my latest Gold Price Outlook for a closer look at XAU/USD short-term technical trading levels.
For a full breakdown of Michael’s trading strategy, see his Fundamentals of Technical Analysis series on Bbuilding a Terase Sstrategy
Gold Traders Sentiment – XAU/USD price chart
- A summary of IG customer mood shows traders are net long gold – ratio is +3.38 (77.19% of traders are long) – typically bearishread
- Long positions are1.41% lower than yesterday and 0.84% lower than last week
- Short positions are 5.37% higher than yesterday and 2.56% lower than last week
- We typically view crowd sentiment as contrarian and the fact that traders are net long suggests gold prices could fall further. Still, traders are less net long than yesterday but more net long since last week. Of a feeling As of today, the combination of current positioning and recent changes gives us another mixed bias on gold trading.
Silver Price Chart – XAG/USD Weekly
Chart Created By Michael ButrosTechnical Strategist; Silver on Tradingview
Remarks: in my last Silver weekly technical forecast we noticed that XAG/USD had: “bounced off downtrend confluent support, with the rise now approaching initial downtrend resistance. In a similar scenario to gold, silver prices are now up a staggering 14.8% from the lows, with rally testing highlighting midline resistance at 20.86-21.13 in this week. The focus is on a possible price reversal up here in the coming days. A break on the upside would uncover the 38.2% retracement of the 2020 decline/52-week moving average 22.71/84 and the target is open annually at 23.28. Critical support stable at 18.28/69 with a close below needed to threaten the resumption of the broader downtrend towards the 2020 high weekly close 16.66.
Conclusion: silver is We are testing downtrend resistance here, looking for a pivot point outside of this zone to provide clarity on our medium-term direction. A good zone from a trading perspective to reduce long exposures / increase protective stops – look for a break of the month opening area (19.50-20.86) for orientation in the coming week.
Active weekly technical charts
– Written by Michael ButrosTechnical Strategist at DailyFX
consequences MIchael on twitter @MBForex