Gold (XAU / USD) is trading within a downtrend channel formed since November 19. The 1-hour chart shows that gold has strong resistance at 1,796.
A sharp break through the downtrend channel and a consolidation above 1,796 will be the start of a bullish move to the 200 EMA located at 1,808 and up to the resistance 4/8 murray at 1,812.50.
Gold is being attractive to investors amid a resurgence of fears over the Covid Omicron variant. However, if risk aversion intensifies, the dollar could regain its safe haven status, limiting the recovery in the price of gold.
The 1,781 area represents strong support for gold. On previous occasions, as you can see on the chart, it has been bouncing around this level and has given it a bullish movement. As long as the price remains or consolidates above this level, we may have an opportunity to buy in the next few days.
If a break below 1,780 is confirmed, gold could lose its value, exposing the strong support at 1,750. To the upside, a consolidation above 1,808 (200 EMA) would ease downward pressures. For now, it remains trading between the range of 1,781-1,812.
Our trading plan for the next few hours to buy gold as it consolidates above 3/8 murray with targets at 1,808.51 and through 1,812. The eagle indicator is showing signs of a technical rebound, which confirms our bullish strategy.
Support and Resistance Levels for November 30, 2021
Resistance (3) 1,815
Resistance (2) 1,807
Resistance (1) 1,796
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Support (1) 1,787
Support (2) 1,775
Support (3) 1,767
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A trading tip for GOLD November 30, 2021
Buy above 1,796 (3/8) with take profit at 1,808 (200 EMA) and 1,812 (4/8), stop loss below 1,790.
The material has been provided by InstaForex Company - www.instaforex.com