Lingrid | GOLD What can we expect in PRICE ACTION next WEEK?

As I predicted last week, the gold markets gradually increased during the trading week, reaching a level of 2,050. The market did, however, change direction and close below the previous week's high, suggesting that the momentum has run out. Given that we have previously experienced significant pressure from bears in this roughly range, it is important to notice that there is significant technical weakness just above. We might advance to the 1970–1950 range if we break below the candle's low.

It's unclear if we will hit the highs again, but we did so quite quickly last week, reaching major weekly resistance. It's also important to note how much gold was dumped on Friday. This is obviously a not good sign, so even if we do sell from here, you have to consider that this is a short-term opportunity rather than a long-term trend shift since we still continue to see a lot of noise. At least, that is how things stand right now.

It is also important to note how closely the recent price action looks similar the price action from January. We have the same 1-2-3 point move, then the market forms an ascending channel while the RSI shows a divergence. The market dropped to the 1950 level after a third push up.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

Comment:

The price perfectly fulfills my last idea. The market is heading toward a resistance area between 2016-2020. The price fell below the previous support level that was rejected multiple times as a resistance. The price made an impulse move down from the main daily level, which means the bulls are exhausted. Gold might create a head and shoulders pattern. I think gold may form a potential fake breakout of the 2020 zone. My goal is support area around 1970 - 1973