Another leg down
Another leg in gold is expected that last week’s in reversal will be given after a new record high of $ 2,956. The week ended with a weekly Beerarish flood pattern when gold fell under the support of the previous two weeks and it ended the week in a bearish position, in the lower third of the trade range of the week. Moreover, a breakdown of a rising trendline and 20-day MA has activated, which further confirms the weakness. Only one leg is removed from the record high of $ 2,956 today and a minimum of two legs down is common for a bearish retracement.
Successful resistance test
This week’s advance tested earlier support from the Trendline as resistance and resistance was seen around the line. The 20-day line is the other trend indicator that was tested as a resistance, but it failed as resistance because gold rose above the 20-day ma and four days were traded above. Nevertheless, together, gold may have completed the trend rally to test earlier support as a resistance. As soon as that happens, the chance of a bearish continuation improves.
Inside Week offers important price levels
An inner week is determined for this week, so that two main text levels must be considered. The low point for the week was $ 2,855 and the high is $ 2,930. A decisive movement through both price level can determine the next direction. Although the technical evidence is more on the Bearish side, a persistent meeting above the high this week would require a recasting views and opening the possibility of a bullish continuation of the trend in the short term. On the other hand, the next lower target for gold if the recent swing low at $ 2,833 does not retain support, a range of approximately $ 2,813 to $ 2,810, consisting of the 38.2% Fibonacci retracement and the first target for a falling ABCD pattern respectively.
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