New Recordhigh leads to Pullback
The new high in gold on Thursday took place near an previously identified potential resistance zone derived from the confluence of various indicative goals. Although gold rose above the high of $ 3,043 that was the top of the price zone, it did not go much further before it experienced that the climb stopped. As at all price levels, they must be considered an area of potential price resistance or support.
Increasing sales pressure
Because today’s reversal is clear and reaches a three -day low, it seems that natural gas indicates the increasing sales pressure that will probably lead to a test of support at lower price levels. A maximum lower price objective indicated by the current analysis would be the rising trend line at the bottom of the current parallel trend channel (marked). Today it is around $ 2,924. However, the 38.2% Fibonacci racement offers the first potential lower target at $ 2,792. Then the earlier trend would be high at $ 2,956. Further on, the confluence of the 20-day MA is at $ 2,946 and the 50% retro level at $ 2,945. Note that, since the 20-day line is rising, it can converge with a higher price level before it is tested as support.
Rally above $ 3,058 improves bullish prospects
Short-term Bearish indications will be canceled at a persistent meeting above the high-rate high of $ 3,058. That could mean that gold had correction for one or a few days before he gathered to continue the climb. This can happen without gold going much lower. Of course, a persistent rally above the High -High has a good chance of leading to a new high outbreak above $ 3,058. Gold would then go to the top of a rising channel, along with a confluence goal zone around $ 3,080.
Look for a look in all the economic events of today Economic calendar.