Gold Technical Analysis and Near-Term Outlook
Gold settled below crucial near-term support at $1780. This has positioned gold to challenge the $1759 swing low again. This is a bearish decision point for the long-term because $1759 is the smaller than (0.618) target of the primary wave down from $2107.6. Based on the more recent waves, the $1759 confluence point is lowered to $1756 +/- $4. This objective is expected to be challenged tomorrow. Closing below $1756 will substantially increase odds for a decline to the primary wave’s $1631 equal to (1.00) target in the coming weeks. For the near-term, a close below $1756 will clear the way for $1737, $1720, and $1695.
The $1756 target is the most confluent objective on the chart, so there is a modest chance that a double bottom could form around this area. There are no bullish patterns or signals that call for a double bottom to take shape, but this must be considered given the importance of the $1756 target.
With that said, should $1756 hold and gold rise above $1786 look for a test of key near-term resistance at $1799. This is currently the smaller than target of the wave up from $1759 and the 62 percent retracement of the decline from $1815.2. Closing above $1799 would call for a move toward $1820 again.
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