Gold makes a false break of the strong resistance and goes back to the support for another retest. On the daily chart, there is still a possible bearish scenario. What's next?
Gold is under pressure from the resistance and it is still unable to break out of the upside range.
The price is coming back to test the support line of the channel.
On the daily chart, there is a 5-day pre-break accumulation, which is close to the support line. Consequently, due to the lack of proper upside reaction from the level, there are chances of a downside breakout.
Below the channel line there is a strong support level 1988, a breakdown of this area will mean further significant price declines
Strong resistance: the descending line, the level of 2000
Strong support: the lower boundary of the channel, the level of 1988
It is difficult to predict now, so we will act post factum: if the price breaks the support, we will wait for it to fall first to 1988, and then to 1980. If the price breaks the resistance, we will wait for the growth up to 2020.
Gold is under pressure from the resistance and it is still unable to break out of the upside range.
The price is coming back to test the support line of the channel.
On the daily chart, there is a 5-day pre-break accumulation, which is close to the support line. Consequently, due to the lack of proper upside reaction from the level, there are chances of a downside breakout.
Below the channel line there is a strong support level 1988, a breakdown of this area will mean further significant price declines
Strong resistance: the descending line, the level of 2000
Strong support: the lower boundary of the channel, the level of 1988
It is difficult to predict now, so we will act post factum: if the price breaks the support, we will wait for it to fall first to 1988, and then to 1980. If the price breaks the resistance, we will wait for the growth up to 2020.