- The weekly chart shows bullish reversal signs in the form of low volume and bullish candlesticks with the wicks to the downside.
- Gold appears bullish according to the daily chart, and the risk-reward ratio is in favour of the bulls.
The weekly chart shows a series of bullish candlestick formations. Long wicks to the downside show that there is a high demand for gold even when the sellers try to push the price down heavily. We can take note of this as a bullish signal.
There has also been a slight decrease in volume on the weekly chart as the price began retracing, which signals a lower and lower selling interest.
The daily chart has signs of a rounding formation at the bottom. A long entry could be taken at current levels, then setting a stop loss below the recent lows as shown in the chart below. Targets could be set at the resistance zone at $1,972.7 and then the all-time-highs above $2096.