Technical outlook:
Gold has rallied through fresh highs around $1914 on Tuesday before pulling back a bit. The yellow metal is seen to be trading around $1910-11 at this point in writing and is expected to test $1916 highs in the near term. Bears remain in clined to be back in control anytime soon since the recent highs have been accompanied by bearish divergence on RSI (not shown here)
Gold has carved a religious rally since $1780 lows registered on January 28, carving strong supports around $1820, $1845 and $1886 respectively as marked on the 4H chart presented here. A real below $1886 will be considered as the first sign of a potential top and reversal. Until that happens, there is room to test $1916 high.
Gold prices have hit the Fibonacci extensions of its primary upswing between $1753 and $1854 levels, around $1914 (depicted in Red). The trade cycle that had begun since $1753 is now complete and the yellow metal should reverse lower from here soon. Watch out for a break below $1886 lows for the first confirmation that bears are back in control.
Trading plan:
Potential bearish reversal from $1914-20 zone, against $1930.
Good luck!
