Gold is Still Missing a Bullish Phase and It’s Around the Corner
Previous XAU/USD Chart Update
Gold has recently reached a high of 2070, which is the price level back in the summer of 2020. However, a sharp bearish impulse took place immediately from the 2070 level, followed by a bearish flag formation. Recently, price has broken the bearish flag structure and is falling toward a key support level of 1860.
This scenario is very similar with the price action pattern back in 2020 summer. After falling to 1860 level, price consolidated, creating a bullish phase. Currently, we are still missing a bullish phase after the price has reached a new high. Therefore, 1860 level is a key support area to watch for potential buy entries. At this level, we will look for a consolidation/reversal pattern on lower time frame charts.
The first buy target is in the area of 1980. The second target is the previous high at 2070 level.
Gold has recently reached a high of 2070, which is the price level back in the summer of 2020. However, a sharp bearish impulse took place immediately from the 2070 level, followed by a bearish flag formation. Recently, price has broken the bearish flag structure and is falling toward a key support level of 1860.
This scenario is very similar with the price action pattern back in 2020 summer. After falling to 1860 level, price consolidated, creating a bullish phase. Currently, we are still missing a bullish phase after the price has reached a new high. Therefore, 1860 level is a key support area to watch for potential buy entries. At this level, we will look for a consolidation/reversal pattern on lower time frame charts.
The first buy target is in the area of 1980. The second target is the previous high at 2070 level.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.