Gold is operating around 1,863 and continues to show upward strength, although it has resistance at 1,865-1,867. If it exceeds this area, it could reach up to 1,875 where 8/8 of murray is located which represents strong resistance.
The XAU / USD pair fell in the American session to 1,856.26. It is expected to continue rebounding from this level and is likely to continue its upward movement in the next few hours to the psychological level of 1,870.
The daily pivot point is located at 1,859. This is the key level. A price action below this zone could accelerate the downward movement of gold and we could expect a fall to 6/8 of a murray located at 1,843.
The 21-day moving average is located at 1,854.55, the level of great importance. Since November 3, gold has been consolidating and trading above this 21 SMA. A close below this on the 4-hour chart could be the start of a bearish scenario.
According to the 4-hour chart, the formation of a wedge pattern is going on. The break below this technical pattern could be the beginning of a bearish movement. For this, we should wait for a confirmation with the daily close below 1,854.
The eagle indicator has reached the level of 95 points, this is an extremely overbought level. A correction is imminent in the next few days towards the area of 1,843 and until 1,830.
Our trading plan for the next few hours is to expect a technical rebound around 1,854. If the price consolidates and remains above this level, it will be an opportunity to buy.
On the other hand, if in the next few hours we see that gold is breaking the 21-day moving average and consolidates below 1,854, it will be a clear signal for us to sell with targets at 1,843. So, the price could reach 1,812 in the next few days.
Support and Resistance Levels for November 15 - 16, 2021
Resistance (3) 1,890
Resistance (2) 1,882
Resistance (1) 1,873
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Support (1) 1,850
Support (2) 1,843
Support (3) 1,835
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A trading tip for GOLD for November 15 - 16, 2021
Sell below 1,852 (SMA 21) with take profit at 1,843 (6/8) and 1,828 (5/8) and stop loss above 1,860.
The material has been provided by InstaForex Company - www.instaforex.com