Gold Breaks Above the Descending Triangle Pattern and $2000
Gold Technical Analysis
The H4 chart of Gold shows that there are more buyers in the market than sellers. The prices have been moving in a descending triangle pattern for the past two weeks. Now, it has broken above the psychological $2000 mark. It is the same level where the 100-period Simple Moving Average is standing. If prices manage to reach $2006, the initial resistance, it would further raise towards the next resistance at $2015.
Right now, the XAU/USD is hovering above the 100-period SMA. However, the MACD histograms appearing below the zero line suggest that the bears are still present in the market. Whereas, the 60 value of the Relative Strength Index (RSI) also shows that market participants are turning bullish. The upcoming ISM Manufacturing Index from the US economic docket will help traders better understand the coming trend.
The idea is to wait for the candle to close above the sloping line of descending triangle and then enter the market with a long position.
Daily Technical Levels
| Support | Resistance |
| 1933.71 | 1999.06 |
| 1991.83 | 2002.53 |
| 1988.36 | 2004.41 |
Pivot Point: 1997.18
