Gold is trading at $1,730 level and it continues to stay on the buyer's territory. Yesterday's false breakdown, candle, has confirmed once again that the bulls are still in charge and they could force the price to resume its upside journey.
A USD further drop versus its rivals could help the yellow metal's price increase and to approach new highs in the short term. You should be careful today as the US data will bring high volatility into the markets, some poor data will boost the gold price. Also, FED Chair Powell's Testimony could shake the market and could bring life on the gold price later today.
The gold price has failed its chance to reach the $1,700 psychological level again and to close below the upper median line (uml) of the minor orange descending pitchfork signaling that the uptrend could continue.
The near-term resistance remains at the inside sliding line (SL) of the ascending pitchfork, so only a valid breakout above this dynamic obstacle and above the $1,744 high will validate a potential growth at lest till the $1,800 level.
The $1,700 and the median line (ML) of the major ascending pitchfork represent critical support levels, a valid breakdown below these obstacles will announce a larger corrective phase.
Gold has decreased a little in the short term within the descending pitchfork's body, but yesterday's candle could confirm a valid breakout from the down channel between the upper median line (uml) and the median line (ml).
- GOLD Trading Opportunity
I believe that a valid breakout above the $1,744, another higher high, will bring a buying opportunity, the first target is seen at the R1 ($1,773) level, while the second one is represented by the $1,800 - R2 ($1,819) area and at the upper median line (UML) of the ascending pitchfork.
If you want to sell gold hoping that the price will decrease, you should wait for a valid breakdown below the $1,666 static support, this scenario could validate a Head&Shoulders pattern and a potential drop $1,600 - $1,555 area.
