Failed outbreak
A failed bullish breakout can continue in the opposite direction. In other words, the chance of a bearish reversal increases. Today’s low point of $ 2,917 is the most important support in the short term, because a decrease can lead to a support test near the lower boundary line of the pennant and a possible decrease due to the bottom of the pattern. From today, the lower line around the low point of Tuesday is 2,892 and therefore it can be used as a proxy for the line.
Support levels look solid
Nevertheless, when the line is broken, an interim small swing low is included in the string formation for $ 2,878. A little lower is a lower swing low and the bottom of the pennant for $ 2,864. Note that today the 20-day MA (Purple) has risen to $ 2,862, almost match the pennant floor.
Those two indicators are crucial for current progress. If one of the two is broken at the disadvantage and gold stays there, the chance of a deeper bearish racement increases. The rise corner for the trend will then change, possibly to match the lower 50-day ma, now at $ 2,743.
Bullish possible can still occur
Despite the slow start of the pennant outbreak, a decisive rise above the high -high high of $ 2,955 would cause a bullish continuation of the trend on the weekly period. And that would set gold on track to focus on higher price levels. An extension of 300% shows a possible target at $ 2,982. Further on is another extensive price target for $ 3,012.
Look for a look in all the economic events of today Economic calendar.