The sales pressure is increasing
Although the next lower target is the 38.2% Fibonacci racement for $ 2,813, the decision -making of the bears will probably lead to a lower price test. The earlier trend high from $ 2,790 is an obvious target, but if the sales pressure is retained, that price level can be broken. Lower price levels are identified by at least two indicators as a possible support zone.
The first is the 50-day MA at $ 2,769, which has been merged with the 50%retracement, also at $ 2,769. Since the next lower Uptrend line rises to the 50% retracement zone, by the time gold that is approaching potential support zone, the trendline must also be taken into consideration. This assumes that the trendline did not fail to stay support.
Monthly Bearish shooter for February
The longer period of time is a concern, given that the month of February ends today. Gold is set to complete the month with a potentially bearish shooting star candlestick pattern. However, it is not bearish until a demolition triggers confirms the pattern. Nevertheless, it shows the month that ends in a relatively weak position in relation to the trading range of the month.
The low point for the month is $ 2,772, near where the 50-day line is now. This leaves gold in a precarious position where a monthly demolition can be activated. Nevertheless, follow-through will be the key. If the monthly Bearish shoots start to the disadvantage, this opens the possibility of a final test of previous monthly resistance to $ 2,726 from December.
20-day Ma marks important potential resistance
Interim rallies can be viewed for signs of resistance that can develop into Bearish Intraday reversal patterns. The 20-day MA is an obvious line that is tested as a resistance and it is now at $ 2,896. It can be combined with Tuesday low of $ 2,888 for a potential resistance zone.