Gold (XAUUSD) futures contracts traded at the CME have been proving strong momentum growth since the bottom of March 2021. The strong recovery in prices accompanied by many other commodities is now at the crossroad and traders may be asking whether the bulls are still in control to push prices outside the defined pattern (pitchfork).
Our Technical Analysis suggests prices need to come off from their current levels. The Scholastics and RSI indicators show to be overbought and the upside move reached the Fibonacci “Golden Ratio” point of 0.618 (depending on the futures contract used and the price spread provided by your broker).
We see this is the perfect occasion for taking profit and looking for the next reverse moves once the price touches the support line defined by the upside trendline (green) and the inner band on the pitchfork (blue band) or even reaching the 0.382 points on the Fibonacci retracement lines.
Today is Thursday 27 May and next Monday 31 is Memorial Day and no trading in many key financial centers.
Our Technical Analysis suggests prices need to come off from their current levels. The Scholastics and RSI indicators show to be overbought and the upside move reached the Fibonacci “Golden Ratio” point of 0.618 (depending on the futures contract used and the price spread provided by your broker).
We see this is the perfect occasion for taking profit and looking for the next reverse moves once the price touches the support line defined by the upside trendline (green) and the inner band on the pitchfork (blue band) or even reaching the 0.382 points on the Fibonacci retracement lines.
Today is Thursday 27 May and next Monday 31 is Memorial Day and no trading in many key financial centers.