Gold GOLD PRO WEEKLY, February 14 - 18, 2022

[Sive Morten]

Greetings everybody,

So, on daily chart we haven't got the clear B&B, but upward action that we've suggested is started. Today, the major question that we have to answer is whether we get real upside breakout or deeper retracement starts.

Personally I have positive view on gold in short-term by few reasons. Technically, it shows good performance with acceleration and shows good resistance to cross market headwinds from the dollar and the interest rates. Geopolitical tensions eased but gold market has moved higher yesterday. Now the headache for Biden administration and the Fed is coming. For the 2-3 weeks everybody has heard just "Ukraine" now screams about Inflation are heard again.

On daily chart market has big cluster of targets around 1910-1950 area. The way how market reacts on 1875 top could mean that upward breakout is coming. At least, price stands tight around it, without deep pullback:

And today it is important what will happen around 1880 area, where we have two different OP's. If W&R and sharp downside reaction happen - be prepared for deeper downside retracement. But if market either just breaks it up or turns to tight sideways action, forming a triangle, rectangle, or any tight consolidation - upward breakout stands right around the corner.
So, if you haven't taken long position yesterday and would like to have it - you could consider using Stop "Buy" order around OP target or slightly above it, around 1885 area.

 

[Sive Morten]

Morning everybody,

So, gold shows nice performance. Recent acceleration suggests that it should keep going higher and complete existing targets around 1920-1950 area. In general, gold is supported not by only political tensions that eased a bit recently, but mostly uncertainty around US financial policy. Investors start suspect something and have some concerns that Fed steps might be not enough to hold inflation and keep economy in upward direction.
Thus, our suggestion that gold should keep going higher. Now, price stops because of reaching daily overbought once again, so, minor pullback could happen:

On 4H chart we're watching for two nearest support areas. In fact with recent upside swing we could get small B&B "Buy" pattern. If everything goes well retracment should stay above 1865-1870 K-area. We consider no short positions by far: