Last week’s supportive gap vs. bears nearest ally. When can we expect a bigger move?
In today’s gold price forecast, I decided to share with you my insights from today’s Quick Gold Alert. Have a nice read!
Technical Picture of Gold
The overall situation in the short term hasn’t changed much as gold futures are trading in a narrow range (inside the purple consolidation) between the key very short-term support (the green gap (2646.30-2657.95) from Wednesday) and the nearest resistance (yesterday’s red gap ($2,674-$2,681).
Therefore, in my opinion, as long as there is no successful breakout above $2,690.50 (Friday’s intraday high) or a breakdown under $2,644.10 (Friday’s intraday low) another bigger move is not likely to be seen, and short-lived moves in both directions should not surprise us.
Why?
Because the breakout above the upper line of the formation will translate into the closing of the mentioned red gap, which will deprive the bears of an ally and open the way for the bulls to the north (at least to the barrier of $2,700 or even to the Nov.25 peak of $2,748 and the upper line of the medium-term orange rising trend channel at around $2,672.40 at the moment).
On the other hand, the breakdown under the lower border of the consolidation will close the green supportive gap, which could translate into an attack on the next green gaps [from Nov.20 and then Nov. 19] in the following days.
Connecting the dots, in my opinion, and waiting on the sidelines for clearer and more reliable guidance seem to be the safest investment solution at the moment.
Summing up, gold futures are currently trading in a narrow range, which makes the very short-term picture a bit unclear. Therefore, in my opinion, keeping an eye on the mentioned gaps could be the key to further profitable trades. Stay tuned.
Have a profitable day and see you tomorrow.
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Anna Radomska