Wow……What a beautiful move this instrument (Gold XAUUSD) shown after a long fall from 19 April. Like Gold, this picture is also looking very shiny or we can say going to shine.
Gold price seems to rise to a very good level ($ 1350). In this chart, we see Rounding bottom is on its way to complete the shape. Rounding bottom is a bullish reversal pattern with the “U” shape and usually form to opposite the previous trend. This pattern is very strong in nature and can play a big role like a “Joker in the pack”. Here 70% of the structure is almost completed and seems to go on.
On the other hand, Relative Strength Index (RSI) is on the beautiful path to give strength to the “U” pattern. At this point of time, RSI is at 64 (which is now at between uptrend territory), gently moving upward. At this level of 1254, participants can go for buy gold for 1300 and 1350 Mark.
Forecast– Buy at Initial levels for the 1st target of 1300 and 1350 will be the next target. If price touches 1220 level then it will negate the view.