Is The GOLD Increase Finished? | KOL Analysis•Olimpiu Tuns

Gold has managed to extend its rally and it was almost to reach the $2,000 psychological level in the early morning. The price is traded at $1,941.30, way below the $1,981.13 todays high, all-time high.

The yellow metal is trading in the red on the Daily chart, it has erased today‘s gains after the failure to close above or near a major dynamic resistance. Gold remains bullish, despite today’s drop, a corrective phase could be natural and expected after the amazing rally.

The USDs corrective phase has helped the gold price to climb towards fresh new highs, also, the COVID-19 crisis and the global risk have attracted more and more buyers on this safe-haven instrument.

● Gold Rejected By The Warning Line!

As you can see on the chart above, the gold price has increased within an ascending pitchfork, the upper median line (UML) has represented a very strong dynamic resistance, the aggressive breakout above this dynamic obstacle has confirmed an important bullish movement.

Actually, the valid breakout above the $1,800 psychological level has signaled that the gold could take out the resistance from the upper median line (UML) and it could climb towards fresh new highs.

The price has edged higher in the last days ignoring the $1.921 historical high, it has climbed as much as $1,981 level, above the first warning line (WL1) registering another historical high. The false breakout above the warning line (WL1) could signal that the upside movement could be finished and that a corrective phase could develop soon.

Still, the outlook is bullish and it will remain bullish even if the price will retreat, decline, in the short term. If the gold price will give birth to a corrective phase, the 150% Fibonacci line, the upper median line (UML), and the $1,800 psychological level are seen as downside targets.

Only a minor drop could give us another chance to go long, to buy it, as the rate could try again to approach and reach the upper median line (UML) and the $1,981.13 historical high. I believe that a larger drop, corrective phase, could be signaled only by a drop and stabilization below the upper median line (UML) of the major ascending pitchfork.

● XAUUSD Bearish Engulfing On The H4？

XAU/USD has jumped above the first warning line (WL1), but it has failed to close above this dynamic resistance, now it could come back down trying to close the gap up. The price action has developed a potential bearish engulfing, reversal pattern, but we still need confirmation before going short.

A major reversal pattern here around the warning line (WL1), resistance level, could announce that the gold price will decline in the upcoming period. Personally, I would like to see another increase to the first warning line (WL1) because only another false breakout above the WL1 or a failure to reach this dynamic resistance could really validate a larger drop, corrective phase.

Gold could decrease a little in the short term trying to recapture more bullish energy, the failure to close the gap, and to close below the 150% Fibonacci line could announce another bullish momentum. The yellow metal could slip lower also if the USD will strike back.

{About the Author}

Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.

He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.

Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Signal Provider / Trader / Trainer.

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