At Extreme Investor Network, we understand the importance of keeping a close eye on the stock market and trading patterns in order to make informed investment decisions. In this blog post, we will delve into the next possible support zone for gold prices and what the charts are indicating for potential future movements.
The next potential support area for gold prices may be seen around a top rising channel line that is currently near 2,298. If gold drops further below the 50-Day MA and stays below it, the recent swing low of 2,277 is at risk of being broken. Looking at the charts, there are several lower price areas marked, but let’s focus on a developing falling ABCD pattern.
A bearish continuation was triggered following a two-day bounce, with support seen around the 50-day line leading to a retest of resistance. However, since resistance was followed by a decline, it looks like the initial target from the pattern at 2,239 could be reached eventually.
Moving further down, a potentially more significant price zone is indicated around 2,207 to 2,195, which was previously trend highs of a small consolidation pattern. When combined with Fibonacci price levels, this area could serve as a strong support zone. A breakout of that consolidation pattern was the most recent before the April 12 swing high, making it a crucial level to watch for potential support.
Analyzing the weekly chart, we see a bearish trend as this week is likely to end below last week’s low, confirming a weekly bearish continuation signal. The last two weeks have shown a bearish reaction to the new trend high, indicating a failed breakout. Failed patterns like these often lead to sharp moves in the opposite direction.
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