Gold Finding Support At $1764
Gold has experienced turbulence after trying to trend above the $2000 round number in August 2020.
All appeared fine at first but price soon started to decline and has since formed an area of consolidation
between $1764 and $2075 which is the current all-time high.
Price dipped below the daily 200 simple moving average in November 2020 but quickly moved back
above this level.
Then from early January 2021 price started to interact with the 200sma once again and then began to
decline further below this indicator this month. As the 200sma has now failed as support, we have to look
at the next level price may come down to. In this case, it is the low of the consolidation at $1764.
Since interacting with this support level, price has reacted and started to move back to the upside.
This does not mean that we won’t see a further decline, it just means that this level is holding for now.
To confirm that this level is holding price up long-term, we want to see price move back above the
daily 200sma and following that we want to see price form higher highs and higher lows.
We will continue to apply patience to Gold and take advantage if and when we see a resumption of the
overall bull trend.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
All appeared fine at first but price soon started to decline and has since formed an area of consolidation
between $1764 and $2075 which is the current all-time high.
Price dipped below the daily 200 simple moving average in November 2020 but quickly moved back
above this level.
Then from early January 2021 price started to interact with the 200sma once again and then began to
decline further below this indicator this month. As the 200sma has now failed as support, we have to look
at the next level price may come down to. In this case, it is the low of the consolidation at $1764.
Since interacting with this support level, price has reacted and started to move back to the upside.
This does not mean that we won’t see a further decline, it just means that this level is holding for now.
To confirm that this level is holding price up long-term, we want to see price move back above the
daily 200sma and following that we want to see price form higher highs and higher lows.
We will continue to apply patience to Gold and take advantage if and when we see a resumption of the
overall bull trend.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
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