Last week saw gold bounce back after holding its one-year old bullish trend line and support around $3,120-$3,167 range. As well as that, this area was also the point D of an AB=CD move, sometimes called a bullish Gartley pattern. This area will be key on any future dips – bearish if we go below it.
For now, gold is consolidating, but starting to look a bit heavy again. The lower highs from the past several weeks suggests appetite for the safe haven assets is waning.
Interim support is now seen around $3,300. Things will get interesting if gold now breaks decisively below this level.
If that happens, the next stop could be at $3,250, which as the last resistance pre breakout last week. Below that, $3,200 and the support trend of the larger consolidation pattern will come into focus.
Resistance comes in at $3,325, followed by $3,360, with the latter marking the resistance trend of the consolidation pattern. Above it, $3,400 and then the all-time high of $3,500 are the next key levels.
By Fawad Razaqzada, market analyst with FOREX.com
For now, gold is consolidating, but starting to look a bit heavy again. The lower highs from the past several weeks suggests appetite for the safe haven assets is waning.
Interim support is now seen around $3,300. Things will get interesting if gold now breaks decisively below this level.
If that happens, the next stop could be at $3,250, which as the last resistance pre breakout last week. Below that, $3,200 and the support trend of the larger consolidation pattern will come into focus.
Resistance comes in at $3,325, followed by $3,360, with the latter marking the resistance trend of the consolidation pattern. Above it, $3,400 and then the all-time high of $3,500 are the next key levels.
By Fawad Razaqzada, market analyst with FOREX.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.