Gold long term technical analysis July 2020

Gold, more bullish pressure?

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In the latest month, gold prices continue to add to their bullish pressure. Nothing could stop the price from moving upward yet. If the bullish pressure continue then we might see the precious metal hanging near $1,800 soon. Last month, the economic reopening deemed successful. However, the reopening also accompanied by a sharp increase in new coronavirus cases.

At the current time, more and more states in the U.S halt the reopening or rollback the policies. It seems the coronavirus cases could not be solved soon. Under current situation, we might see gold continue its bullish pressure and reach the $2,000 handle.

New Month

Monthly Chart

The bullish trend of gold is not stoppable as the price continue climb above the top of channel. On the chart, we could see the price is testing the highs shown by the horizontal level. It is a major resistance level to watch. Most of the times, the price will get rejected from the resistance level and looking for major support level before it continue higher.

If the price move lower then $1,700, $1,600 will become major levels to watch.

Weekly Chart

No clear outlook has seen on the weekly chart of gold. The price is in a bullish trend and currently hanging near the high. This week, there is a bearish attempt that might develop into a major bearish correction. No clue yet at the current time, traders might want to continue stay sideline for now.

Daily Chart

$1,680 flip level has brought gold prices to continue moving upward toward $1,800 round numbers. However, the precious metal might close the day on the bearish side and form a bearish engulfing pattern. It could mean the start of bearish correction with $1,750 and $1,680 as the target.

Traders could consider long positions when gold reaches both levels.

Trade Plan

The long-term trend of gold is bullish but we might need to prepare for a possible short-medium-term bearish correction. Traders could use $1,800 as the level to enter short positions. If not possible then traders could enter short positions when breakout and retest of $1,750 happen.

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