Booking Profit in Gold, As MAs Keep Pushing it Up
Gold continues the bullish run, with MAs acting as support indicators
Gold turned bearish in August last year, as the safe haven status was transferred to cryptocurrencies, from the traditional precious metals. Gold reversed from all time highs above $2,000, falling around $400 lower.
That gave us the impression that Gold was going to turn bearish in the long run as we explained in our 2021 Gold forecast, considering that the global economy was improving as well. But, the decline ended at the end of March around $1.675 and since then Gold has been climbing higher.
The USD has turned bearish again during this month which has helped keep the pressure to the upside in GOLD . Moving averages have also been doing a great job as support indicators on the H4 chart, pushing the price higher after retreating.
The trend has picked up pace since the first week of May, as indicated by the moving averages. The larger MAs used to provide support in April when the trend was slower, now that it has picked up pace the larger ones have taken over.
The 100 SMA (green) was providing support earlier, wile in the last two weeks the 20 SMA (gray) has taken up that job. Last Friday we saw a slight retreat to the 20 SMA but that moving average held as support and we decided to open a buy forex signal down there.
The price reversed back up at the end of that day, while today it continued higher, hitting our take profit target. So, we cashed in on that trade, now we are waiting for another pullback lower in order to buy Gold again.
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