Six Day Narrow Price Range
Gold has been moving relatively sideways for the past six days, following a test of resistance around the 78.6% retracement level at $2,930 last week. Last week’s high was $2,930 and it established a lower swing high relative to the recent new record high of $2,956 reached two weeks ago. This means that a bullish breakout above $2,930 could see a spike in demand as the record high would be next in line to be challenged.
Higher targets for gold include the completion of a rising ABCD pattern at $2,974. But the pattern needs to see a rise above last week’s high before it becomes valid. A little higher is a long-term target. The 300% extension of a retracement measuring the March 2022 bearish correction points to potential resistance around $2,982.
Gold Could Go Either Way
Key near-term support is at $2,880 as a drop below that price level before a rise above last week’s high, shows a likely continuation of the bearish correction that followed the recent record high. Gold closed the week with a bearish reversal weekly pattern, ending in the lower third of the trading range. It showed the potential for a deeper bearish pullback than that what has been seen so far. The 50-Day MA is the next lower more significant support zone if Monday’s low is busted to the downside.
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