Gold’s Intraday Bounce and Bearish Signals: Key Levels and Outlook
Gold Forecast Video for 22.05.23 by Bruce Powers
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Gold bounces and trades intraday as an inside day. A drop below today’s low of 1,954 is bearish and could lead to a deeper retracement, and certainly a test of this week’s low at 1,952. In that case, the next lower support zone looks to be around a range from approximately 1,943 to 1,934. That price zone includes the completion of a declining ABCD pattern with a 127.2% projection of the CD leg to 1,943.
Rally from Here Heads into Resistance Range
On the other side, a decisive rally above today’s high of 1,984 would see gold rally up into consolidation resistance. Possible resistance around the 34-Day line could be seen. It is now at 1,992. Slightly higher is the 12-Day EMA at 1,996. The 12-Day line is close enough to the short uptrend line to be able to use it as a proxy for the trendline. A daily close above either the moving averages or uptrend line will be a sign of strength.
Strong, Well-Structured Uptrend
Given the large up trending channel, it would be normal and common for gold to correct down to the area of the uptrend line because price is vibrating between the two parallel lines marking the channel. This doesn’t mean it gets there, just an alert to be ready for a possible continuation of the retracement, if it is to occur.
Bullish Outlook for Gold with Expectations of New Highs Before Year-End
Once the correction phase is complete, the outlook for gold is bullish with expectations for new highs before the end of the year. This is what the technical picture for gold is telling us. Gold is in a clear uptrend since the double bottom triggered a bullish reversal off last year’s low of 1,614, with a series of higher swing highs and higher swing lows. It is well above the long-term trend indicator, the 200-Day EMA (not show). Finally, it looks to be preparing for another shot at breaking out of a 12-Year base that takes the shape of a cup with handle. It is currently completing the handle.
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