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Gold looking Bullish again

Market Analysis

XAUUSD, Daily              

Gold hit a two week high yesterday (September 21) following the FED rate announcement, and closed at 1335.18. Technically it broke up through and closed above the 20 DMA and the 50 DMA on the Daily chart. Although one strong candle does not an autumn move make, it was significant as it also closed above the 38.2 Fibonacci retracement level from the July high of 1374.89 and the August low of 1304.52.

The higher time frame Monthly chart remains bullish, whilst the Weekly chart is neutral and has support around 1315 and resistance at 1350. The Parabolic SAR remains negative and I expect some profit taking and a retracement from current levels, however a close above 1325 remains positive, following all the central bank announcements this week.  Additionally,  late September tends to be a strong time of the year for gold as the Asian wedding season starts in earnest.  An entry at 1333.40 was triggered with Target 1 at the psychological 1350.00, north of the Bollinger band and the 61.8 Fib level at 1348.00 and Target 2 below the July high at 1366.00.

The 1315-1310 zone should provide longer term support and below that 1304 and 1300.

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Stuart Cowell

Market Analyst

HotForex

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