Gold: Weekly Forecast 23rd - 27th March 2020
The gold continued to plunge first since it broke below the bottom of a 10-month rising channel.
It quickly found support and pulled back strongly just above 1450 and a 7-month demand zone.
The rebound also caused a falling trendline in the H1 chart to be broken which led gold into a range between 1450 and 1550.
Although the price has continued to create lower highs in the range, the lows have also started to inch higher with strong rebounds.
The gold is most probably oversold and a stronger upwards pullback could be required before the next wave of a selloff, which is most likely coupled with the next big plunge of the stock market.
Should the price pulls back, we can look to sell again at the supply zone from 1580 onward, which is also the bottom of the previously broken rising channel.
It quickly found support and pulled back strongly just above 1450 and a 7-month demand zone.
The rebound also caused a falling trendline in the H1 chart to be broken which led gold into a range between 1450 and 1550.
Although the price has continued to create lower highs in the range, the lows have also started to inch higher with strong rebounds.
The gold is most probably oversold and a stronger upwards pullback could be required before the next wave of a selloff, which is most likely coupled with the next big plunge of the stock market.
Should the price pulls back, we can look to sell again at the supply zone from 1580 onward, which is also the bottom of the previously broken rising channel.
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