ABCD revised extensive target
An important point to consider is that the high today’s high was slightly above the earlier trend high at $ 2,882 and that resistance was therefore seen closer to the rising ABCD patriard target at $ 2,889, as shown on the graph. The ABCD pattern wants to identify comparable or harmonic relationships between successive edition or reduction.
As soon as those relationships have been met, a potential pivot level is identified. The purpose of $ 2,889 is 161.8% (gold ratio) of the price change that is seen in the first advance, with the AB label. Given the bearish reaction today, it seems that gold recognizes that resistance zone.
Pullback probably
Given the strong rally in gold, it would be healthy for the bull trend to rest and withdraw or consolidate before the prices move higher. An obvious potential support zone is around the earlier high of $ 2,790. That price level can be combined with the low point of this week at $ 2,772 and the 38.2% Fibonacci racement for $ 2,776. Together they present a price zone from $ 2,790 to $ 2,772.
Since the 20-day MA has risen, it is also not far away from that price zone, now at 2,764. Opterse Momentum improved when the 20-day line was recovered in the early January. Since then, the 20-day line has not been tested as support. Certainly, it could be during the upcoming Retracement, if that is what happens.
Look for a look in all the economic events of today Economic calendar.