GOLD → Technical pullback and retest of up-trend support

12 мая 2023 г.

Gold forms an upward price channel in the average range of 800 points. During a technical pullback and correction, the price retests the support area. What's next?



Gold is approaching the lower boundary of the upward price channel. The trend is bullish and the support area is quite strong, hence, we have quite high chances for a rebound and possible continuation of the price growth along the trend.
The SMA-50 on the 4-hour timeframe acts as resistance, while the price is approaching the SMA-200, which is currently playing the role of support.
Two scenarios are possible from the support level. We will need to wait for a confirmation on the chart for each one, as a breakout of support can be either true or false.
In a true break-down the price can go down to the level of 1976.67.

Strong support: the ascending price channel, 1997, 1988, 1976.
Strong resistance: 2019, 2020, 2032
I think uptrend support is capable of stopping and reversing the price. There is no news today that could globally affect the price, so I will stick with this scenario.

Regards, R. Linda!