Gold has plummeted more than 14% off the January highs with price registering fresh yearly lows into downtrend support this week. Today’s response to technical support threatens a near-term recovery in price with momentum extremes and shifts in trader sentiment further highlighting this risk. Here are the updated targets and invalidation levels that matter for Gold. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.
Technical Outlook: In last week’s Gold price forecastwe highlighted the consolidation in price just above long-term support at 1204. We noted that a, “break lower from here targets subsequent objectives at the 50-line around ~1190s backed closely by a structural support confluence at 1175/80(area of interest for possible exhaustion / long-entries IF reached).” A decisive break early in the week fueled an accelerated sell-off with price registering a low at 1160 / pitchfork support before reversing sharply yesterday. Note that the low was just pips ahead of pitchfork support- so was that it?
Notes: A closer look at price action further highlights today’s reversal off slope support with gold testing initial resistance back at 1180. Subsequent resistance targets are eyed at 1194 and 1204- a breach above this threshold would be needed to suggest a more significant low is in place. A break of these lows keeps the broader focus on longer-term support at 1124/30.
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