Technical Analytics Report

XAU/USD: Fundamental Analysis Report 19 April 2021

 

Current Trend: Gold recovers lost positions 

Gold quotes are correcting upward, trading at the level of $1,777 an ounce. After the opening of trades, the instrument is in an uptrend. In the absence of significant fundamental factors, the growth of the metal can be attributed to two main reasons. First, there is a significant downward correction in the US bond market. 10-year securities, which at the beginning of the month showed a yield of 1.769%, have now noticeably decreased, and at the moment, the yield is 1.571%. Since gold yield began to overtake bonds’ yield, some investors moved their capital into gold.

The second reason is more likely confirmation of the previous one and states the fact that capital has begun to return to gold. According to the Commodity Futures Trading Commission (CFTC), the number of pure speculative positions in gold has increased significantly compared to the data at the beginning of the month, and now has reached 180.9K, while at the beginning of April their number was 167.5K.

Support and Resistance

Asset quotes move within the global corrective trend and grow after reaching the global support line. Technical indicators have issued a new buy signal. Alligator indicator’s EMA fluctuations range began to expand upwards, and the histogram of the AO oscillator moved into the positive zone.

Resistance Levels: 1793.0, 1818.0.

Support Levels: 1755.0, 1682.0.

 Trading Tips

 After corrective growth or consolidation above the local resistance level of 1793.0, buy positions with the target at 1818.0 are relevant. Stop loss is 1780.0. Implementation period: 7 days or more.

After global decline or consolidation below the local support level of 1755.0, sell positions with the target at 1682.0 are relevant. Stop loss is 1780.0.

 Scenario

 Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 1793.0

Take Profit: 1818.0

Stop Loss: 1780.0

Key Levels: 1682.0, 1755.0, 1793.0, 1818.0

Alternative Scenario

 Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 1755.0

Take Profit: 1682.0

Stop Loss: 1780.0

Key Levels: 1682.0, 1755.0, 1793.0, 1818.0

 

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