Gold has been trading exactly what I expected yesterday. Gold did trade lower and met our downward target at $1,464, which is also a strong support level. Now, I do expect potential rally today and test of $1,485 due to oversold condition.
Yellow rectangle – Broken support now became resistance
Rising purple line – Expected path
Purple horizontal line – Target reached FE 100%
MACD oscillator is showing decreasing momentum in the last down move, which is sign that buyers may react. Important support is set at the price of $1,464 and resistance at $1,485. Watch for buying opportunities today on the pullbacks 5/15 min time-frame. Anyway, in case of the down break of $1,460, there is potential for more downside and potential test of $1,423.
