Gold forms an interesting set-up. A false break of the key channel support puts the price back in an uptrend. What to expect from the price?
Earlier the price did very well at the Fibo level at 0.382, and this time it made a false-break-down of 0.236 and a strong reaction to the weak support, which tells us about the whole situation. It looks like gold is not going to fall.
The price returns to the channel and forms a consolidation above the support, which is a good signal for long positions.
With this maneuver the price opens a good bullish potential.
Support levels: 1980, 1975 and 1965
Resistance levels are 1985, 2000 and 2010
A consolidation above the level could be a good signal
In the near future, price may be headed for a retest of resistance 2000. Another test and the level may fail, in which case we may see bullish momentum. Short-term target is 2010, medium-term target is resistance 2050
Earlier the price did very well at the Fibo level at 0.382, and this time it made a false-break-down of 0.236 and a strong reaction to the weak support, which tells us about the whole situation. It looks like gold is not going to fall.
The price returns to the channel and forms a consolidation above the support, which is a good signal for long positions.
With this maneuver the price opens a good bullish potential.
Support levels: 1980, 1975 and 1965
Resistance levels are 1985, 2000 and 2010
A consolidation above the level could be a good signal
In the near future, price may be headed for a retest of resistance 2000. Another test and the level may fail, in which case we may see bullish momentum. Short-term target is 2010, medium-term target is resistance 2050