Gold appears to shrug-off gravestone doji, major trend on verge of retracing 61.8% Fibos & hitting multi-years highs

The precious yellow metal price has been surging constantly from the last two-three weeks or so. While Gold futures contracts gained upside traction at the end of 2019 amid the U.S. dollar taking back foot leads the demand for gold prices.

XAUUSD price is edging higher towards $1,525 levels with intensified buying momentum.

Technically, gold bulls are shrug-off the gravestone doji patterns occurred at the stiff resistance of $1,519 levels.

Gravestone doji, Hanging man & Bearish engulfing patterns were traced out at the stiff resistance ($1,519.43) of Gold’s price (XAUUSD). These bearish patterns halted the rallies from the last 2-3 months, and delayed multi-years highs, while dragonfly doji occurred at $1,456 levels that counters with the stern rallies and resumes the uptrend above DMAs, thereby, consequently, the range-bounded minor trend has continued. (refer daily chart). The minor trend has been oscillating between range lows of $1445.51 and range highs of $1,556.88 levels. But for now, as the bulls seem to be breaking out the stiff resistance coupled with bullish MACD crossover, we could expect robust uptrend.

On a broader perspective, the bullish perspective remains intact despite 4-5 months’ overbought pressures and the major trend has retraced from the lows of 2015 lows 1046 to the highs of October 2012, now on the verge of 61.8% Fibonacci levels (refer monthly chart).

Monthly study suggests that we are dealing with a broader 3rd wave rally of higher scale, which will most likely extend to 1636 (i.e. 78.6% Fib.-projection).

The recent setbacks defended a minor wave 2 setback target at 1519 (minor 78.6 %), which suggests that Gold is ready to resume its broader up-trend straight away.

The failure swings of this pivotal resistances have plunged and causing the risk of missing another setback into projected wave 4 setback targets in form of 38.2 % Fib.-retracements on different scales at 1446 and at 1406 persists. The breakdown of 1476 (50% Fibs in daily) would confirm a deeper setback, whereas any bounce back from the current levels should receive confirmation and pave the way for our favored bullish stance to a straight extension of the major uptrend.

Well, contemplating all technical rationale, on trading grounds, at spot reference: $1,522.25 levels while articulating, one can think of trading one-touch call option with upper strikes of $1,532 levels.

Alternatively, on hedging grounds, we advocated longs in CME gold contracts for Decemberr’19 delivery, we now rolled over these long positions as we could foresee more upside risks amid the global financial crisis.