Gold is coming to crucial Technical supports & may turn soon (16th July,2022)

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Gold is coming to crucial Technical supports & may turn soon (16th July,2022)

Gold is coming to crucial Technical supports & may turn soon (16th July,2022)

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attached is the chart of gold Weekly (upper panel) & daily (middle panel)

Technical View:

  1. ( Weekly), after hitting the double top in first week of March,2022 , gold has been correcting steadily & forming the weekly falling wedge, shown by the latest two parallel lines in latest price. Compare it with the what happened last time when gold hit the high near 2083$ in Aug,2020. formation suggests that gold may follow this formation & turn upwards shortly.
  2. (weekly), the big thick horizontal Red Line has been providing supports for many times like in April,2020-June,2020-March,2021-August,2021 & seems it’s going to be the support this time too as it’s coming near the support of the end of falling wedge as well as 200 day moving average (green line coming from downwards and may touch prices as support).
  3. (Daily), also confirming the falling wedge inside falling wedge to trigger the bullish formation near support & as prices have already fell 120$ after the DEATH CROSS(+ blue sign) (200 SMA crossing 50 SMA from below) on 4th July  and seems 1 more leg may come down and touch support near 1665-1656.
  4. Weekly & Daily both RSI have also formed falling wedge  below 30 suggesting the oversold area.

I posted silver some days ago too forming bullish flag & targeting 24-25 $ , so gold is also suggesting the confirmation for each other too.

*** special consideration should be taken when closes below 1634$ for couple of days as we have posted the alternative scenario too shown by thick blue line Inverted Head & Shoulders formation*** & plan accordingly.

Plan:

looking to buy the gold between 1656-1666 $$$ for the target of 1840.

Stop loss should according to your risk appetite, long term investors shouldn’t worry but if you are trader then 1601 $ & for short term investor, sl should be 1556 & look to buy again near 1486.

Thank you,

Sanjay Galani,CFTe

marketcrafts.co.in