Gold fails to keep Thursday’s bounce, refreshes intraday low. Downbeat momentum, extended trading below 200-SMA suggest confirmation of bearish chart pattern is on the way. 100-SMA adds to the downside filters, monthly top offers extra resistance. Gold drops to the fresh intraday low around $1,726, down 0.05% on a day, during early Friday. In doing so, the yellow metal fades the previous day’s corrective pullback while keeping sellers hopeful inside a bearish chart formation.
The commodity’s failures to keep the recovery moves seem to join a downward sloping momentum line and sustained trading below 200-SMA in favoring the bears.
However, a clear downside break below $1,721 becomes necessary as 100-SMA adds to the downside filters.
Following that the $1,700 can offer an intermediate halt before dragging the quote towards the monthly low of around $1,677.
Meanwhile, $1,745-46 and 200-SMA level near $1,756 guard the bullion’s short-term upside ahead of a horizontal line comprising the monthly peak and February 19 low close to $1,760.
It’s worth mentioning that the metal’s ability to cross $1,760 is a golden pass for the bulls as November 2020 lows near $1,765 also challenge the further upside.
Technical analysis A rounding top bearish formation on the four-hour chart needs validation from a downside break of $1,722 to recall the $1,700 on the chart. Meanwhile, $1,755 guards the short-term upside moves.
@Roopesh72, I would see at 1721 level first if the price couldn't hold, next target will be 1705 - then 1685 wouldn't be too far. But hopefully not going to be today :)
Upside still hard to break at 1745 and 1756
Based on Elliott Wave, I would see at 3th level first how low will it test - then I could measure the next leg :)
So 1685 possible?