Second Low Toment Day
Because this is the second day after a bullish breakout signal for a pattern, and there is few signs that buyers jump in, the pattern remains the risk of failure. Today’s low is support in the short term and if it is undermined, a drop to the lower area of the pattern becomes possible. Another Bearish signal activates under the low point of yesterday of $ 2,919. Because the lower boundary line is dynamic, the low point of last Thursday $ 2,900 and the low point of Tuesday at $ 2,892 can help.
Above $ 2,892 shows strength
Nevertheless, a drop below $ 2,892 increases the chance that the breakout of the bull limper has failed. If correct, a decrease due to the bottom of the pennant becomes possible. Other important potential support levels start with the bottom of the pennant and a small interim -swing low is $ 2,864. Note that the important trend indicator, the 20-day MA, near that swing is low at $ 2,854 and rises.
The 20-day MA represents the larger potential support level. Note that it has not yet been tested as support since it was recovered on January 7. This seems to indicate that it has a good chance of being tested as support on a deeper withdrawal, minimal. Further on, the earlier trend is high and now a potential support zone for $ 2,790.
Upside goals
The advantage is the next higher price target $ 2,961. It is followed by potential resistance at $ 2,982 and then $ 3,012. With just one day left a week, the final position of gold within the trading range of this week can provide insight into its potential direction for the following week.
Look for a look in all the economic events of today Economic calendar.