Gold is currently stuck at a cross-road consisting of a downtrend line from early January and a near-term uptrend line from earlier in the month. The price action since the monthly low has been a choppy grind higher, which hints at the notion that it is a corrective play within the context of a downtrend.
If this is the case, then a move lower should begin soon. To validate this outlook a break below the lower trend-line needs to take shape, with a drop below the recent low (4-hr chart) under 1718 as ideal to confirm.
Should this develop, weakness will quickly bring back into play a larger crossroad of support via the May 2019 trend-line, 2020 horizontal line, and the underside trend-line from August.
Should we see the upward grind pick up momentum and clear the top-side trend-line it is currently poking above, then a larger recovery or better may be under way. Will need to keep an eye on how price action unfolds around the 1764 area for signs of whether it will turn from a prior source of support to resistance.
Buy area : 1712 - 1710
Stop Loss : 1700
Target : 1760 - 1764
If this is the case, then a move lower should begin soon. To validate this outlook a break below the lower trend-line needs to take shape, with a drop below the recent low (4-hr chart) under 1718 as ideal to confirm.
Should this develop, weakness will quickly bring back into play a larger crossroad of support via the May 2019 trend-line, 2020 horizontal line, and the underside trend-line from August.
Should we see the upward grind pick up momentum and clear the top-side trend-line it is currently poking above, then a larger recovery or better may be under way. Will need to keep an eye on how price action unfolds around the 1764 area for signs of whether it will turn from a prior source of support to resistance.
Buy area : 1712 - 1710
Stop Loss : 1700
Target : 1760 - 1764