Next lower target is $ 2,813
The next Note Door is the low point of three weeks at $ 2,813. Given the contemporary Bearish Momentum and decrease below the most important price levels, it probably seems likely that the three -week low will also fail as support. Further on, the minimum expected 38.2% Fibonacci racement is at $ 2,813, which can show signs of support.
Nevertheless, the next higher advancing average, as soon as an important progressive average is broken, a potential target is broken. That is why the 50-day MA is a maximum lower target for the correction. It is currently at $ 2,764 and rises, therefore close to the converging with the 50% retro level at $ 2,769.
Lower potential goals
A long-term bull trend forecast signal was generated at the end of January on an outbreak above the earlier trend high at $ 2,790. That price level was the resistance to the upward trend for about 13 weeks before it was surpassed. That is why it can be easily tested as support during a bearish retracement. Moreover, because the 50-day line is rising, it could come together with the former $ 2,790 high before it is reached.
Or certainly near that price level. Nevertheless, it can also be considered as the top of a potential support range that goes to the 50% racement at $ 2,769. This assumes that the 50-day line corresponds to whether the 50% retracement exceeds in the coming days or weeks.
Signs of power to face downward pressure
Rallies are likely to be used by investors to leave long positions and enter shorts. The 20-day MA at $ 2,892 is an obvious potential resistance, along with the lows of the previous few days at $ 2,888. Finally, since the month of February tomorrow, gold runs the risk of ending the month in a relatively weak position in the lower half of the trading range of the month.