Gold is making new highs with confidence. The price finally updated the high of mid-March to 2032, but at the same time it made a false-break, which heralded the beginning of a technical pullback. What should we expect from price in the coming week?
The technical pullback that started at 2032 might go to 0.382 Fibo (level 1995) and get back to the growth track, which is a false-break of one of the important liquidity zones, the 2000 level.
In the medium term the price is in the phase of formation of the 5th wave of the Elliot, the target of which is the Fibo level of 1.618 of the global movement - the price of 2103.
The probability of reaching it is high. If we pay attention to the monthly chart, we can notice the following situation:
The strong 2000 liquidity area, which was formed in mid-2020, is confirmed in early 2022. March after the false breakdown of the level closes very close and in April we break through this area. If the price is able to consolidate above this area within the weekly-monthly timeframe, the price will open the way further up. The bullish trend can last quite a long time, there are too many motivating factors.
Strong support level: 2000 (false-break strategy) 1995 (touching)
Strong resistance level: 2009-2010 (breakout strategy), 2025 (breakdown)
I expect at the beginning of the week a small pullback to strong support with the following continuation of the growth towards 2070
The technical pullback that started at 2032 might go to 0.382 Fibo (level 1995) and get back to the growth track, which is a false-break of one of the important liquidity zones, the 2000 level.
In the medium term the price is in the phase of formation of the 5th wave of the Elliot, the target of which is the Fibo level of 1.618 of the global movement - the price of 2103.
The probability of reaching it is high. If we pay attention to the monthly chart, we can notice the following situation:
The strong 2000 liquidity area, which was formed in mid-2020, is confirmed in early 2022. March after the false breakdown of the level closes very close and in April we break through this area. If the price is able to consolidate above this area within the weekly-monthly timeframe, the price will open the way further up. The bullish trend can last quite a long time, there are too many motivating factors.
Strong support level: 2000 (false-break strategy) 1995 (touching)
Strong resistance level: 2009-2010 (breakout strategy), 2025 (breakdown)
I expect at the beginning of the week a small pullback to strong support with the following continuation of the growth towards 2070
