Welcome to Extreme Investor Network, where we provide you with valuable insights and analysis on the stock market, trading, and Wall Street trends. Today, we want to discuss the recent bearish continuation below 2,287 in the gold market.
Gold has been experiencing a price support zone from around last week’s low of 2,287 to the prior swing low at 2,277 from early May. The recent bearish price behavior, including a drop below the 50-Day MA and a bearish rejection at resistance around the 50-Day line, suggests a potential deeper retracement may be on the horizon.
To confirm a clear bearish continuation signal, a decisive drop below the 2,277 price level is needed. While a decline below 2,287 shows weakening, sustainable breakdown support may still be evident around the May swing low.
Looking ahead, the next lower target zone approaches trendline support around 2,252, where a falling ABCD pattern completes. This area signifies price symmetry between the AB and CD legs of the decline, potentially indicating an important pivot point. Further declines below 2,252 could lead to a test of support at lower levels, with a price zone from roughly 2,211 to 2,195 becoming crucial.
Previous resistance areas often turn into subsequent support levels during a pullback, highlighting the importance of monitoring the lower uptrend as a parameter for a rising parallel trend channel.
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