Six -day narrow price range
Gold has been relocated relatively sideways for the past six days, after a resistance test around the Retracement level of 78.6% at $ 2,930 last week. Last week’s high was $ 2,930 and it established a lower swing high compared to the recent new record high of $ 2,956 reached two weeks ago. This means that a bullish breakout above $ 2,930 could see a peak in demand, because the record height would be the following in line to be challenged.
Higher goals for gold include the completion of an increasing ABCD pattern at $ 2,974. But the pattern must see an increase in the high last week before it becomes valid. A little higher is a long -term target. The extension of 300% of a retracement that measures the bearish correction of March 2022 in potential resistance around $ 2,982.
Gold can go in all directions
The most important short -term support is $ 2,880 as a decrease in that price level for an increase above the high of last week, shows a likely continuation of the Bearish correction that followed the recent record high. Gold closed the week with a Bearish reversal pattern weekly, ending in the lower third part of the trade range. It showed the potential for a deeper bearish pullback than what has been seen so far. The 50-day MA is the next lower, more important support zone if the low point from Monday to the disadvantage is caught.
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