Last week Gold slid down roughly 4%, on a daily chart it took the support again 50% Fibonacci retracement level $1765. Also, on a weekly basis it closed below 50 SMA ($1816). It is the first time Gold has broken 50 SMA on a weekly basis since June 2018, which is the first sign that the long term bullish trend is getting weaker. Even though the Dollar Index is range bound, Gold is showing weakness on a short to medium term basis.
Technically, for the coming week Gold will continue to face resistance at 61.8% retracement level which is at $1839, and above that between $1850-1860 level which is the zone for 50, 100 and 200 days SMA. While on the downside, if it breaks below $1765 level, the next important support level is at $1765.
Silver has been trading sideways for almost 3 weeks now. It is facing immediate resistance at $28, above that it might attempt to cross its previous high which was at $30. On a weekly basis, the first important support is at 50 SMA which is at $22.17. On a daily chart, Silver is taking the support continuously at 78.6% Fibonacci retracement level which is at $25.84.
Bitcoin has gone up more than 16% last week and it is trading above it’s 161.8% Fibonacci retracement level which was at $50433 level. The next major resistance level for Bitcoin is at 261.8% Fibonacci retracement level on a weekly basis at $63720. While the previous resistance might act as the first support on the downside which is at $50454 and below that next support is at 127.2% retracement level at $46251.
Since the last pullback in the month of January-2021, Ethereum has crossed 161.8% retracement level at $1681 and made a high above $1970 level. Next major resistance is at 261.8% Fibonacci retracement level at $2074 and above that 361% retracement level is at $2469. While on the downside first support is at 1682 level, 161.8% retracement.
The contents of this article do not constitute trading advice and should be treated as general information only.
Please trade responsibly. For more information about responsible trading please visit: https://deriv.com/responsible/
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with Deriv.com