Gold bugs are losing their grip and focus is on the downside.
Bears can seek a full test of familiar Fibs and potentially take on confluence areas in a deeper retracement.
Gold prices are trapped between support and resistance but there is a bearish bias until a full test of at least the 38.2% Fibonacci retracement level.
The following is a top-down analysis that illustrates where there could be, first, a bullish opportunity in a healthy correction, to second, a subsequent downside extension. Monthly chart Bears seeking a fuller retracement, eye the 38.2% Fibo and a 50% mean reversion thereafter.At a stretch, the 61.8% Fibo has a confluence with prior resistance structure. Weekly chart The weekly chart shows that the price has been firmly rejected in the prior structure and marks a trendline resistance as well.Support holds and could equate to a meanwhile upside correction prior to the […]
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