Gold Prices Testing Support Levels Following Bearish Breakdown

At Extreme Investor Network, we provide expert analysis and unique insights into the stock market, trading, and all things Wall Street. Today, we are looking at the next potential moves in the market, starting with the lower target zone which is set to begin at 2,261. After completing a 50% retracement, we are now eyeing a support zone ranging from 2,261 to 2,255, with additional confluence from two Fibonacci retracement levels. An initial conservative target from the bear flag is calculated at 2,238, and given the recent drop, there is a strong possibility it may be reached.

Looking further down the road, we see the 50-day moving average potentially being tested as support, currently sitting at 2,232. A range from two Fibonacci levels sets up a significant area of interest from 2,212 to 2,208. This range includes the 50% retracement of the full swing from the February lows, as well as the completion of a falling ABCD pattern. It is quite likely that gold will eventually test this support zone before moving higher.

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In terms of recent market activity, April ended on a bearish note, closing relatively weak with a shooting star pattern. Despite this, last month’s support of 2,228 will be a key level to watch. A break below this level could signify weakening, but the importance will depend on the follow-through. Keep an eye on the 50-day MA and Fibonacci support zone on the daily chart, as they sit below April’s low, indicating potential support if the market continues to drop.

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