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17.05.202208:26 Forex Analysis & Reviews: Trading plan for Gold on May 17, 2022

Exchange Rates 17.05.2022 analysis

Technical outlook:

Gold prices raised through the $1,830-31 levels on Monday during the past hour. The yellow metal has moved in tune with our earlier projection and has also taken out the initial resistance around $1,828 with ease. Ideally, prices should pull back slightly toward $1,815 and $1,803 before resuming a counter-trend rally.

Gold has been dropping since the $2,070 high and has completed a meaningful down trade cycle as marked on the chart here. Further, bears have been successful in carving a meaningful downswing between $1,998 and $1,786. As expected, the counter-trend rally is now underway towards the $1,910-20 area.

Also, note that the Fibonacci 0.618 retracement of the above downswing is seen to be passing through $1,919. The high probability remains for a bearish turn if prices manage to reach there. Furthermore, the past support-turned-resistance is seen through the $1,900-1,905 zone. Bears might be inclined to come back in control thereafter.

Trading plan:

Potential rally through $1,900-20 against $1,780

Good luck!

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Oscar Ton,
Analytical expert of InstaSpot
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