Possible double top forms
Today’s price action will leave a small possible double top. The neckline and the demolition level were at the low point of Tuesday $ 2,864. However, that price surface is currently the next potential support level. Another Bearish piece of evidence today is that it is an important reversing day that generated the second top of a possible double topp pattern. As soon as the bearish start to stack evidence, the potential for a bearish correction reinforces.
Weekly graph is Beerarish
In addition, Gold will complete a bearish Shooting Star Candlestick pattern on the weekly graph this week. That is why a bearish signal will be activated weekly on a drop below the low point of this week of $ 2,853. That would enable gold to test the 20-day MA, now at $ 2,817. Note that since the 20-day line has been recovered in the early January, the price of gold has remained above the line. Since then, the line has not been tested as support.
Certainly, it is probably support during the current Bearish correction, if it continues. If this is not the case, the most recent new high -brain level is $ 2,790 and support can be seen around that price area. There is also monthly support slightly lower at $ 2,772. Those two price levels can be considered a potential support range from $ 2,790 to $ 2,772.
Support test on 20-day MA possible
In view of the current price patterns, including a bullish monthly outbreak that has activated this month, a Bearish correction should not destroy the longer bullish pattern, unless there is a drop below the low point of this month 2,772. Although the month has not yet been completed, that is also a weekly layer and a drop underneath is in itself bearish. However, the intervening bullish image must be retained, the 20-day Ma must show support and lead to a bullish reversal.
Look for a look in all the economic events of today Economic calendar.