Lingrid | GOLD Weekly Price Analysis

During the last summer trading week, gold went up to the resistance zone at 1950. The week ended with the bearish formation of a large candle with a long tail on the daily timeframe. It is interesting where this candlestick was formed. Strong support and the 61.8% Fibonacci level. This suggests that we might see a correction from the resistance zone at 1950-1955. It is worth noting that the U.S. dollar index is rising, which can affect gold. Next week, I expect mostly turbulence; both can go up and down. However, all the gathered price action elements show us a slightly bearish sentiment.

If the market breaks through the resistance, it will open the road to 2000, completely wiping out the bears. The monthly candlestick is bearish. It closed below the strong weekly level. If you look at the history, you can see that the price bounced very well on several times from that level.  Will the price do it again? We'll see next week. What do you think?

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 is ranging at the strong resistance zone at 1950 on the 1H timeframe. The market has pulled back from this level many times before. The price formed a potential double top as well as a divergence at resistance on the 1H timeframe. I think we'll see some pullback from the resistance because we have big-level rejection: on the daily timeframe, there's a long-tailed bar. Alternatively, the market can keep ranging at this level before breaking out. If price breaks below the upward trendline, which is going to be a sign of a market structure break, then price may go toward the support of 1925–1930. My goal is a support zone around 1927–1930.