Gold is trading in the read right now after the failure to stabilize above $2,000 level. The current temporary drop was somehow expected after the last rebound. Maybe the rate will retest the immediate support levels before jumping higher.
The short term rebound was natural and expected after the false breakdown below the $1,900 level. A failure to close and stabilize above the $2,000 level could send the price down again. It remains to see what will really happen in the upcoming days because this could be only an accumulation before another upside momentum.
The gold price has failed to stabilize above the 250% Fibonacci line and above $2,000 level and now is trading at $1,988 level, above the $1,976 former low, critical support. The first warning line (WL1) represents strong dynamic support, only a drop below this line could bring more sellers into the game.
- GOLD Trading Tips
Buy another higher high, jump above $2,015 level, the near-term target is at R1 ($2,040) level, while the major upside target is seen at the $2,075 all-time high.
Sell a drop and close below the $1,976 level and below the first warning line (WL1). Another lower low will signal a further drop at least till the Pivot Point ($1,952).
