Advance completed a retracement of 78.6%
The completion of a retracement of 78.6% was achieved this week and was followed today by a one -day Bearish signal. This improves the chance that gold can at least see another leg in the correction before it is through. So far only one leg has been down, which ended at $ 2,833. Although the 20-day line, which was previously dynamic support, was broken last Thursday at the disadvantage, it followed the demolition of another trending indicator, an uptrend line.
During the current advance, the 20-day line failed as a resistance. However, the rising trend line shows a successful resistance test around the trendline, which previously marked dynamic support. The trend line would be tested again as a resistance. Certainly, if there is an advance above the high this week, the trendline is an important area to pay attention to resistance.
Beerarish Continuation will focus on $ 2,813
A bearish continuation of the one -day reversal signal will be indicated on a drop under today’s low $ 2,891, because it causes a bearish continuation. That will bring gold into a position to test the next lower target zone, which is around 38.2% Fibonacci racement at $ 2,813. The retracement level of 38.2% is connected by the initial target for a falling ABCD pattern (purple) or ZIG saw -pattern, at $ 2,810.
Since there are two indicators that mark a similar target price ($ 2,813 to $ 2,810), it is more likely that it is achieved and signs of support. A deeper Bearish Retracement after a new trend high in gold should be better prepared to continue if a new high is reactivated. In the short term, the bull trend had been expanded and before half time.
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