Potential challenge to include a peak of $ 2,956
The recent Bearish Retracement to a swing layer of $ 2,833 and the subsequent rally brings gold in a strong position to possibly break out to a new record high. At the end of February a new record high was established of $ 2,956, making it the current advance in sight.
The first new high target at $ 2,978 is set by an increasing ABCD pattern that is looking for price symmetry between the two recent deposits. It can be considered together with another goal close to $ 2,982. The next higher target above that price zone is on the Fibonacci extension of 127.2% of the recent Bearish correction at $ 2,990.
Weekly breakout confirms strength
It is also important that today’s breakout caused a weekly outbreak above High last week, which took the form of an inner week. A daily closing of this week above the High last week of $ 2,930 will confirm the outbreak for the weekly period.
Bearish RSI divergence a care
Despite the bullish indications mentioned above, there is a concern about a bearish divergence in the relative strength index (RSI). It shows decreasing bullish momentum. Moreover, last month ended with a potentially bearish shooting Star Candlestick pattern. So far, trade in March has been included in the price range from $ 2,772 to $ 2,956 from February. As gold approaches the peak of last month’s price range, it runs the risk of losing a new record high. Sales pressure indicated by the monthly shooting sturdy pattern shows the potential for increased sales pressure as the record high of $ 2,956 is approached.
Look for a look in all the economic events of today Economic calendar.