The bullion reached the targeted 1,270 mark, as the better than expected fundamental data was released during the middle of Tuesday’s trading session. In addition, the fall that occurred due to the release of the data stopped exactly at the support of the junior descending channel pattern.
As a result on Wednesday it can be expected that the commodity price will reach higher and touch the upper trend line of the channel. However, by looking at the various level of significance and taking into account already broken lines, it can be assumed that the movement of the metal could be rather flat until it reaches the support of the active dominant pattern just below the 1,270 mark.
As a result on Wednesday it can be expected that the commodity price will reach higher and touch the upper trend line of the channel. However, by looking at the various level of significance and taking into account already broken lines, it can be assumed that the movement of the metal could be rather flat until it reaches the support of the active dominant pattern just below the 1,270 mark.
Trade closed: target reached:
The yellow metal bounced off the support cluster just below the 1,270 mark, as it was expected, on Thursday morning. As a result of the rebound, the pair broke the medium term channel down pattern.
On Thursday morning the possible borders of a narrow ranged channel up pattern were spotted. However, it is most likely that the channel is just a representation of the first move in the borders of another medium term pattern.
Although, a forecast for Thursday can be made easily. The metal is most likely going to surge up to the 1,292.91 level, where the next notable resistance level is located at. If it is broken, the commodity price might reach the 1,300 mark.
On Thursday morning the possible borders of a narrow ranged channel up pattern were spotted. However, it is most likely that the channel is just a representation of the first move in the borders of another medium term pattern.
Although, a forecast for Thursday can be made easily. The metal is most likely going to surge up to the 1,292.91 level, where the next notable resistance level is located at. If it is broken, the commodity price might reach the 1,300 mark.