Pattern of rising final prices
Because the current stage of the rally started to follow a small withdrawal to $ 2,880, now an interim swing low, every new day ended higher than the final race of the previous day, except one. That is a pattern that can change when the trade session ends on Thursday for a price below the closing price of Wednesday of $ 3,023. Nevertheless, the pattern of higher lows has priority and it remains together with the pattern of higher daily highlights.
Parallel channels
Two rising parallel trend channels are shown on the graph. One is marked and the other shown with two rising blue parallel lines. The top of the channels offers an approach to where signs of resistance can be seen. The top line of the larger channel is now lower and would therefore be approached. Note that today it crosses a small confluence zone around $ 3,080. This confluence zone marks the next higher target area. The lower channel line contributes to its potential significance as a resistance zone.
Support in the short term for $ 3,026
Regardless of the possibility that gold achieves higher goals before a pullback, a drop below the low point of $ 3,026 could change that. It would be a sign of short weakness, but what happened next would be more important. For example, does the decline follow or is there fast recovery and rising prices? The price channels can help identify over solder and overbought areas. Note that the Momentum -Ososcillator of the relative strength index (RSI) in Overbough Condition is approached as an upper channel line is approached.
Probably bullish weekly pattern
With one day to the week, Gold is on track every other week in the top quarter of the trade range of the period. That would show a strong bullish momentum in a larger time frame than the daily. If this happens, it seems that the next higher target zone has a better chance of being reached next week.
Look for a look in all the economic events of today Economic calendar.