XAU/USD – Gold Weekly Analysis 05 May 2017

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CHARTING

The crucial points are:

1

Gold has maintained the bearish momentum in last days, with the price breaching the major rising trendline. This could be attributed to the latest exit polls of the French presidential elections, which shows that the centrist candidate, Emanuel Macron is ahead of the far-right candidate Marin Le Pen. Today, the price of gold is moving upwards, which could be perceived as a long squeeze retracement, as the US Labor market report is about to be published.

Charting outcome: Neutral – Marginally bearish  

INDICATORS (Computerized T.A)

The crucial points are:

2

3

The indicators are signaling that a downtrend has occurred, which is likely to become stronger. The moving averages slopes have added bearishness, while the balance between the negative and the positive dynamic has negatively changed. The trend dynamic has marginally risen by +0.11%, as well as the market’s volatility marginally rising by +8.19%. Finally, the oscillators have passed into oversold territories.

Indicators outcome: Neutral – Marginally bearish         

CONCLUSION

The indicators and charting are in favor of the neutral or marginally bearish outlook. If the price breaks lower than 1215 level, the next support could occur at the 1200 level. On the contrary, if the price appreciates higher than 1235 level of resistance, the next resistance is possible to occur at the 1250 level.