✴️ GOLD Daily timeframe. Mar.27 - Mar.31

26 mar 2023

Gold stops after a strong rally. The formation of a false-break, the transition into consolidation and the closing of the candle under the strong level give quite differently directed preconditions

TA on the high timeframe
1) A reversal candlestick is likely to form on the weekly chart.
2) There is a probability for a correction to the level of 1960.
3) But at the same time the trend is still bullish, hence, this maneuver of decrease will be a technical rollback.
4) The indicators are in the oversold area and the signal for trend reversal
5) High timeframe hints at a reversal or a technical pullback. Potential target is support 1959 (0.236 Fibo), if the level is broken, the price can go down to 1931 (0.382 Fibo)

TA on the low timeframe
1) We can clearly see a sideways range (flat)
2) The price is testing the resistance and closing below 1981 on Friday. I consider this maneuver as a precondition for the weakening of the price
3) Quite controversial fundamental data last week, which may indicate a complication in the gold market.
4) On the second test of the level of 2000, the price failed to renew the local maximum of 2009, reaching only the level of 2003, which testifies about the resistance.
5) On the basis of the data there is a possibility of an attempt to hold the level of 1981 by bulls, but judging by the activity and aggregate data, the medium-term prospect is in the interests of the bears.
6) I expect some consolidation around 1981 at the beginning of the week, but the further movement can be directed down to the level of 1960 and even to 1937 (range support).