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- Huatai Great Wall Futures Co. (based on Bloomberg)
Pair's Outlook
After two days of Gold's correction, provided by the long-term downtrend line around $1,220, XAU/USD received a strong bullish impetus from the weekly pivot point / 100-day SMA and jumped more than $15 per ounce to cross the mentioned resistance. Moreover, an advance continued further and at the moment Gold is facing the next supply area represented by December high, 38.2% Fibonacci retracement, monthly R1 and a Bollinger band around $1,235. We assume that this cluster of resistances is not going to let bulls gain more value for Gold in the near term.
Traders' Sentiment
Distribution between opened positions for buying and selling Gold is still remaining strongly positive and in favor of former, as bulls have a majority with 71% of all trades. Therefore, bullish majority stepped back from the December high by additional three percentage points over the weekend.
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