On October 13, Gold sharply broke the 200 EMA at 1,769. So far, it has been continuing its upward movement, having reached the psychological level of 1,800. This is the price of September 14 and represents a key level.
Above 1,800 to 1,812 is a zone of strong resistance. To continue its upward movement, gold needs to consolidate above 1,800 at first. After that, there could be a rise to the resistance of 6/8 of Murray.
A technical correction is possible in the next few hours only if gold trades below 1,800. This level is a strong barrier because in daily charts in the months of March, April, June, and August it has shown its strength and has acted as good support and resistance. So, we believe that now it could be a top that we must consider and be able to sell below this zone.
In the daily chart, the EMA 200 is located at 1,795 which is the key level. A daily close above the moving average may signal the beginning of a bullish scenario that can reach up to 1,843 and up to 8/8 of Murray at 1,875.
Conversely, if gold consolidates below the 200 EMA (1,795), then there could be just a correction and there may be a good chance to sell below this zone, targeting up to the pivot point of 4/8 located at 1,750.
The Eagle indicator is testing a top around 73 points, which means that it is in a strongly overbought zone. As seen on the chart, this would be its third attempt to break this level. As long as it remains below this top, it will be a sign of correction in the next few hours and a selling opportunity for us.
Our forecast in the short term is to sell below the strong resistance at 1,800. If there is a pullback to 6/8 of Murray (1,812), it will give us an opportunity to sell, targeting the 5/8 support of Murray located at 1,781. The Eagle indicator is showing an overbought signal and may support our bearish outlook.
Support and Resistance Levels for October 14 - 15, 2021
Resistance (3) 1,812
Resistance (2) 1,806
Resistance (1) 1,796
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Support (1) 1,782
Support (2) 1,776
Support (3) 1,761
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A trading tip for GOLD for October 14 - 15, 2021
Sell below 1,800 (strong resistance) with take profit at 1,781 and 1,776 (EMA 200), stop loss above 1,807.
The material has been provided by InstaForex Company - www.instaforex.com