Price of Gold Drops Below $1,950
This happened for the first time since mid-October, when gold was rapidly rising in price on fears related to the escalation of the military conflict in the Middle East.
At the same time, the psychological level of USD 2,000 per ounce demonstrated its importance.
Notice the volatility spikes around it — the bulls were active in the attacks, noticeable on the 4-hour chart, but all the progress made on the upward impulses was almost immediately canceled out by the bears.
The graph shows:
→ formation of a reversal pattern SHS (head-and-shoulders). With some subjectivity, we can assume that the “neck” level is around USD 1,970. But it has already been broken after a weak rebound;
→ the price dropped below EMA (100).
The price can be supported by a trend line drawn at the highs of August-September. After a bullish breakout, it could serve as market support in the area of USD 1,915 per ounce. In the same area is the 50% Fib level of the upward momentum from the October lows to the peak above USD 2,000. If the price falls to the USD 1,910-1,920 zone, it could serve as a support for the bulls to try to resume the bullish trend, if the news background also contributes to this.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
At the same time, the psychological level of USD 2,000 per ounce demonstrated its importance.
Notice the volatility spikes around it — the bulls were active in the attacks, noticeable on the 4-hour chart, but all the progress made on the upward impulses was almost immediately canceled out by the bears.
The graph shows:
→ formation of a reversal pattern SHS (head-and-shoulders). With some subjectivity, we can assume that the “neck” level is around USD 1,970. But it has already been broken after a weak rebound;
→ the price dropped below EMA (100).
The price can be supported by a trend line drawn at the highs of August-September. After a bullish breakout, it could serve as market support in the area of USD 1,915 per ounce. In the same area is the 50% Fib level of the upward momentum from the October lows to the peak above USD 2,000. If the price falls to the USD 1,910-1,920 zone, it could serve as a support for the bulls to try to resume the bullish trend, if the news background also contributes to this.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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