As we’ve previously said, this stopped being a bullflag a long time ago. The trend goes back to the beginning of the last bull run. Traders will all have different interpretations of the chart and its trend, supply/demand etc, this is just our view. We’ve broken out of the previous trendline which was retested and confirmed the bull trend in March 2020.
I would expect there to be some for or retracement over the coming days. A lot of buyers will have come in to buy the dip again last week so we may see a spike down to trigger some stops. We’ve extended the downtrend line to show we are still in the trend, however, we have a confirmed weekly close and market open below the uptrend support which could possible now become resistance. A retest is very likely so a good target for longs.
Support: 1685 1655-50 1645
Resistance: 1705 1720 1745-50
The reason for the boxes. Its not often you get 3 black crows on a weekly chart. Previously it was November 2020 where we formed the candlestick pattern, got a retracement and then continued the downtrend with a lot of negative pressure on Gold. We could be seeing a similar structure forming again which after a move upwards could result in further pressure on Gold in the coming months. Breaking 1750 levels would invalidate the bearish scenario and result in a continuation of higher pricing in Gold.