- Gold bulls take back control to target $1,760 resistance.
- 4-hour W-formation in the makings which is a bearish pattern, $1,700 to come under pressure.
As per the prior analysis, Gold Price Analysis: Bears testing the commitments of the bulls, where the downside was projected to terminate in the low $1,700s, the price has indeed corrected from $1,707.33 and moved in for a higher correction.
”…a deeper target of $1,705 could be on the cards if the price is measured from the deeper 4-hourly correction.”
”Meanwhile, however, the daily bearish impulse is expected to stall at this juncture and a significant correction could be on the cards before the downside can continue as explained in the following analysis:
Gold Price Analysis: Bulls moving out, bears moving in eyeing $1,685.”
Live market, daily chart
The fresh lows make for a strong influence of resistance higher up at a 50% mean reversion that meets the latest highs and prior lows.
The $1,760s are back on the cards, yet to be confirmed from the 4-hour chart:
The upside is expected, however, as the MACD turns less negative and the 10 SMA approaches the 21 SMA.
In doing so, there will be a completion of a bearish W-formation on the 4-hour chart as the price meets resistance.