Gold price forecast: Counter trend rally meets the key resistance.

The resistance test can be completed

Since today's high was characterized by two indicators, it may be the tip for the rally of the counter trend. It is also a five -day high. Short-term strength was seen in today's progress when the 20-day MA was recaptured and the daily meeting is probably above the 20-day line, which is $ 2,903. Nevertheless, the larger bull trend -Breakdown pattern remains dominant.

Although gold continues to rise and higher dynamic resistance levels of the trend line could test, unless it is above the trend line or a rally above the record high, it seems more to the bear correction. However, this cannot happen immediately.

Possible during the week this week

In view of the relatively wide range of trading range of last week, the price range this week could complete the week within the past week. That would set up an Inside week for the next week. Therefore, consolidation over the low of the last week of 2,833 US dollars and today's highest level could be present in the daily time frame. The short-term support is today's low of $ 2,882 and yesterday's low of $ 2,855.

50-day support is the key

The 50-day MA, which is now at $ 2,781, is an essential potential level of support during a bear correction. Note that the line continues to rise and is located with the previous trend with 2,790 US dollars shortly before the convergent trend. There has never been a test for the 50-day line since it was reclaimed at the beginning of January. Therefore, it should indicate support if they are reached during the current bear withdrawal.

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