Red lines- bearish medium-term channel
blue lines- Fibonacci retracements
Gold price is trading just above $1,700 today. Yesterday price broke above the short-term resistance at $1,670 and above the short-term downward sloping channel. We warned bears that if price were to break out of the bearish channel, we should then expect price to reach $1,700. Price has now retraced 50% of the decline from $1,807. Price remains inside the medium-term bearish channel. Price is now challenging the upper channel boundary resistance. The RSI has reached overbought levels. There is increased certainty that we will at least see a short-term pull back. So opening long around $1,710-$1,700 we believe is risky. We should not ignore the medium-term bearish channel. A rejection would be a bearish signal.Channel resistance is at $1,715 and if broken Gold price will at least test $1,732 where we find the 61.8% retracement level.
Relevance up to 14:00 2022-10-06 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
